New Zealand exports outpace imports in positive sign for economy
Exports have been helped by good growing conditions for New Zealand’s meat and dairy industry
NEW Zealand exports outpaced imports in the final three months of last year amid a surge in meat shipments, adding to signs of a recovery from recession.
Export volumes rose 1.3 per cent from the third quarter while import volumes shrank 1.7 per cent, Statistics New Zealand said on Monday (Mar 3). It is the first time net exports have been positive – implying a contribution to gross domestic product – since early 2024.
The data follow stronger-than-expected retail sales growth in the quarter, suggesting GDP expanded after a sharp recession that saw the economy contract 2.1 per cent in the six months to September. Exports have been helped by good growing conditions for New Zealand’s meat and dairy industry, while the local dollar has dropped 9.5 per cent versus the greenback in the past six months.
Meat volumes surged 10 per cent in the quarter and were 18 per cent higher than the year-earlier period, today’s report showed. Total export volumes fell 1.5 per cent in the third quarter and 4.4 per cent in the second quarter.
Imports were led lower by a 17 per cent drop in fuel purchases while machinery and transport equipment also declined. Imports gained 2.6 per cent in the third quarter and 3.8 per cent in the second quarter.
The statistics agency publishes fourth-quarter GDP data on Mar 20. Local economists expect modest growth but will not finalise forecasts until more reports on construction activity and manufacturing production are published in the coming days.
New Zealand’s terms of trade index rose 3.1 per cent in the quarter as export prices gained 3.2 per cent and import prices were little changed, today’s report showed. BLOOMBERG
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