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The monthly trade balance of New Zealand was a surplus of $388 million in April 2021, as per the data released by Stats NZ on overseas merchandise trade. While goods exports increased 1.2% to $5.4 billion, goods imports surged 26% to $5 billion in the month of April 2021 as compared to the same month in 2020.
Vehicles and crude oil drove a substantial increase in overall goods imports in April 2021. The value of goods imports rose 26% from April 2020 to $5 billion last month.
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Crude oil increased by $207 million. The increase was mostly due to increased volume; nevertheless, the average unit value also increased by 39%.
Alasdair Allen, international trade manager, stated that the surge in import values differed with a drop of comparable size in import values in April 2020. New Zealand witnessed COVID-19 Level 4 lockdown in April 2020, with non-essential enterprises closing and restrictions imposed on local and international travel.
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All of New Zealand's major trading partners increased their imports. The European Union saw the highest increase of 41% with increases in automobiles, trucks, mechanical machinery and equipment.
Exports rose but were offset partially by a fall in dairy and fruits
Exports to trading partners saw some contrasting movements. Some of the export commodities to experience an increase in value in the month included logs, wood, and wood articles (up $356 million), mechanical machinery and equipment (up $102 million) and live animals (up $64 million).
The surge in export numbers was driven by a $287 million rise in the value of untreated logs, to a level nearly 4 times greater than the value in April 2020.
However, the increases were partially offset by big drops in dairy products and fruits.
Milk powder, butter, and cheese (the largest export commodity category by value) declined 20%, with milk powder falling due to price and milk fats other than butter falling due to quantity.
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Fruit exports dropped 24%, with the value of gold kiwifruit and apples both down from the level of an year ago. The value of gold kiwifruit declined by $19%, while the quantity declined by 2.8%. The average unit price dropped by 16%.
The decline in gold kiwifruit was majorly because exports of gold kiwifruit to Japan fell by $94 million, which was somewhat offset by minor increases in other countries.
The value of apples declined by 35% while the quantity decreased by 31%.
Other export commodities to fall included food preparations (a commodity group that includes infant formula), down by 30%, and wine (led by a fall in the quantity exported), down by 36%.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
