New Zealand exports hit monthly record on dairy, China demand
There are also growing concerns over supply chain disruptions, higher shipping costs and slowing global demand
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[WELLINGTON] New Zealand’s exports hit an all-time high in March as the trade-dependent economy offset the early impact of the Iran war with bumper dairy sales overseas.
Overseas sales rose 7.3 per cent from a year earlier to NZ$7.9 billion (S$5.9 billion), Statistics New Zealand said on Monday (Apr 20) in Wellington. Exports of milk powder, butter and cheese gained 3.4 per cent, while shipments of fruit, precious metals and aluminium also increased.
While the data are not adjusted for seasonal variation, the lift in exports adds to signs the New Zealand economy was on track to post solid growth in the first quarter before the Middle East conflict pushed up fuel prices and hit business confidence. There are also growing concerns over supply chain disruptions, higher shipping costs and slowing global demand as the US and Iran struggle to agree on a path to peace.
“We thought it would be too early for Middle East disruption to show up in any meaningful way and so it looked, even though judgment is difficult with very volatile monthly data,” said Doug Steel, senior economist at Bank of New Zealand in Wellington.
Exports to China, New Zealand’s biggest market, rose 11 per cent from a year earlier to NZ$2.1 billion, the second highest on record, today’s report showed. Imports from China grew 20 per cent.
By contrast, exports to and imports from the US declined from March last year.
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Overall imports gained 9.6 per cent to NZ$7.25 billion in March, led by mechanical machinery and equipment. Despite the surge in prices across the month, the value of fuel prices fell 30 per cent from a year earlier.
In the 12 months to March, exports rose 9.7 per cent to NZ$81 billion while imports were NZ$84.2 billion. The resulting NZ$3.2 billion annual trade deficit was the widest since July.
“We expect the annual deficit to widen further this year as higher prices for the likes of oil and related products lift the value of imports relative to the value of exports,” said Steel. BLOOMBERG
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