New merchandise trade data from Stats NZ highlighted a shift in New Zealand's trade dynamics for September, with an increase in exports and a decrease in imports compared to the previous year. Notably, the country witnessed the arrival of a Boeing 777, contributing to a spike in aircraft and related engine imports. Shannon Nicoll, an associate economist at Moody's Analytics, observed, "Exports jumped a whopping 5.2% year on year, while imports fell 0.9%." The surge in fruit exports, which more than doubled, propelled the total export value to $5 billion, marking it as the second-highest September export figure on record. Despite this, New Zealand faced a trade deficit of $2.1 billion, albeit lower than the $2.4 billion deficit recorded a year earlier.
Nicoll cautioned that the exceptional performance in exports, particularly fruit, is seasonal and expected to taper off by November. The trend of declining imports persisted, reflecting New Zealanders' hesitancy towards purchasing high-value items, with a noticeable dip in vehicle imports, especially electric cars. The trade balance on both sides remained stagnant, with expectations of slow export growth until stronger international demand emerged. The Chinese market, in particular, has posed challenges to New Zealand's export growth this year.
On the import side, a decrease of 0.9% brought the total to $7.1 billion. The decline was offset by increases in aircraft, machinery, and precious metal imports. Specifically, imports from the United States saw a significant rise, primarily due to an increase in aircraft and aviation parts, highlighted by Air New Zealand's acquisition of a Boeing 777-367ER to support its fleet. Conversely, imports of cars, vehicle accessories, and parts witnessed a substantial decline. The trade data, focusing solely on goods, excluded services imports and exports, providing a comprehensive overview of New Zealand's current trade landscape.
Source: NZ Herald