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Latest numbers from Stats NZ have shown that NZ’s trade balance was a surplus of $33 million for March.
Trade balance shows the difference between a country’s exports and imports in a particular period of time. When a country's exports outweigh its imports, it is considered to have a positive trade balance or a trade surplus, and vice versa.
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New Zealand is a trade-dependent economy. NZ exports about 70%-95% of the output produced by sectors like meat, dairy, fisheries, wine, and forestry. New Zealand is the world’s 12th-largest agricultural exporter by value and No. 1 dairy product exporter in the world.
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Higher monthly exports and imports by value in March
Exports and imports make up about 60% of the total economic activity of NZ.
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NZ exports came in at $5.68 billion in March 2021, up from $4.5 billion in the previous month, while imports hit $5.65 billion, up from $4.3 billion. Though the aggregate trade balance declined, the increase in both exports and imports showed a pick up in trade activity.
Imports were the highest for March and showed a rise even after a drop in crude oil imports (down by $399 million). The drop in crude oil imports was mainly due to an 80% decline in the volume imported.
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Below are some of the factors that added to the rise in imports of NZ in March 2021 as compared to March 2020:
- Vehicles, components, and accessories rose by $190 million.
- Mechanical machinery and equipment were up by $127 million.
- Textiles and clothing products rose by $125 million.
- Electrical machinery and equipment were up by $115 million.
China, the US, the EU, and Australia are some of the top trading partners of NZ.
Imports from China rose by $624 million to $1.3 billion in March 2021. Roughly $94 million of this rise has been coming from electrical machinery and equipment.
While total exports from NZ were down by $134 million in the period as compared to March 2020. The key factor was a $87-million drop in preparations of milk, cereals, flour, and starch with China leading the drop ($45 million).
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Overall, meat exports dropped by $73 million in March. However, meat exports to China achieved the highest monthly total ever, up 42%.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)