New Zealand reports NZ$2.1 billion trade deficit in October

New Zealand’s monthly trade balance for October 2022 was a deficit of NZ$2.1 billion, according to a recent media release by Statistics New Zealand (Stats NZ) on 22 November 2022.

This trade deficit was triggered by increased goods import value of NZ$8.3 billion, up 24% from the previous corresponding period (October 2021). The annual trade deficit, on the other hand, reached a total of NZ$12.9 billion from NZ$4.9 billion last year, as per the Stats NZ report. Goods export value also rose during October, up 14% from October 2021 to NZ$6.1 billion.

The annual goods imports were valued at NZ$84 billion, a 25% rise from the previous year, and annual goods exports were valued at NZ$71.1 billion, 14% more than the prior comparable period.

A glance at Stats NZ’s overseas merchandise trade data

Stats NZ’s overseas merchandise trade data highlighted trade in goods only for October 2022.

Goods export values: goods export value during October 2022 rose by 14% in comparison to October 2021. As per Stats NZ, the biggest contributor to this rise was the milk powder, butter, and cheese industry; it saw NZ$503 million increase, totalling NZ$2 billion for October 2022.

The milk powder industry was the dominant one, with an increase of NZ$218 million, bringing its total value to NZ$1.1 billion. The Stats NZ report says that the quantity only changed slightly while the price per kilogram climbed by 25%. In addition, butter and milk fats significantly increased to NZ$432 million in October 2022. A 38% and a 32% rise in quantity and price per kilogram, respectively.

The value of wine exports increased by NZ$87 million to NZ$278 million. The USA, Australia, and Europe were the largest contributors to these value increases. On the other hand, the value of fruit exports decreased by NZ$69 million to NZ$160 million.

Additionally, New Zealand’s three major trading partners saw an increase in exports. Australia was leading the charts with NZ$160 million rise in value, the USA followed with NZ$87 million increase, and Europe was up NZ$60 million.

Goods import value: rose to NZ$8.3 billion in October 2022, with vehicles, parts, and accessories being the largest contributor, with an increase of NZ$323 million to NZ$1.2 billion:

• Passenger motor car imports, up 32% to NZ$704 million
• Electric vehicle imports, up 346% to NZ$104 million
• Vehicles for the transport of goods, up 68% to NZ$109 million

The second biggest contributor was the petroleum and products industry, with a 44% increase to NZ$943 million. While diesel rose to NZ$493 million in value, petrol also saw a 220% increase to NZ$267 million. Crude oil, on the other hand, dropped by almost 100% in value. This decline could be affected by the cease of the Marsden Point refinery implemented in April 2022.

Four of New Zealand’s top import partners saw rises in October 2022. The biggest movement was reported for the China region, up NZ$317 million to NZ$1.9 billion. This was mainly driven by a more than 50% rise in electrical machinery and equipment. This was followed by Europe, up NZ$231 million, the USA, up NZ$200 million, and Australia, up NZ$131 million.