Asian Economic News

New Zealand Has NZ$168 Million Trade Deficit In October

New Zealand posted a merchandise trade deficit of NZ$168 million in October, Statistics New Zealand said on Wednesday - marking the smallest deficit for an October month in almost 20 years.

The headline figure beat forecasts for a deficit of NZ$350 million following the downwardly revised shortfall of NZ$216 million in September (originally a NZ$199 million deficit).

"The low trade deficit was due to exported goods recording the highest value for an October month," industry and labor statistics manager Louise Holmes-Oliver said. "It was the highest value for exported goods for any month since March 2013."

Exports were worth NZ$4.25 billion, up NZ$783 million or 23 percent. That also topped estimates for NZ$4.00 billion and was up fromNZ$3.82 billion in the previous month.

This rise was due to increases in milk powder, butter, and cheese (up NZ$690 million), the bureau said.

Imports came in at NZ$4.42 billion (up NZ$237 million or 5.7 percent) versus forecasts for NZ$4.32 billion and up from NZ$4.04 billion a month earlier.

All three broad economic categories rose, the bureau said, with intermediate goods showing the largest increase, up NZ$93 million.

After removing seasonal effects, the value of exported goods in October fell 8.2 percent on month.

A fall in crude oil exports from September - which had been at their highest level since July 2012 - had a large effect on seasonally adjusted exports.

Seasonally adjusted imports for October 2013 rose 0.1 percent on month.

Year to date, New Zealand has a trade deficit of NZ$1.005 billion - topping forecasts for a shortfall of NZ$1.120 billion following the NZ$1.550 billion deficit in September.

by RTTNews Staff Writer

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