Trade deficit in September more than expected
NEW Zealand’s annual trade deficit has widened more than expected to $5.2 billion, its largest gap since early 2009.
Despite a boost in exports, led by fruit, inbound oil, fuel and the cost of a oneoff commercial airliner widened the deficit.
The deficit for September widened to $1.56 billion. Imports were worth
$5.18 billion against exports of $4.32 billion.
Westpac senior economist Michael Gordon said in seasonally adjusted terms, the deficit for September was
$579 million, compared with the $416 million deficit for August.
‘‘The trade balance tends to be at its most negative around this time of year, when agricultural exports are at a low ebb,’’ he said.
Seasonally adjusted exports and imports gained strongly in September, in part due to the lower exchange rate, he said.
Exports grew by 9.2%, driven by dairy products, logs, fruit and machinery.
Imports rose by 11.2%, including a sharp jump in petroleum imports which could be ‘‘very jumpy’’ from month to month, he said.
‘‘The import of a Boeing Dreamliner, worth
$275 million, also contributed to the wider deficit for the month,’’ Mr Gordon said.
ASB rural economist Nathan Penny said he expected a ‘‘modest lift’’ to narrow the trade balance in the year ahead, as agricultural production rebounded.
However, he cautioned higher oil prices would keep that lift ‘‘gradual’’.
Statistics New Zealand international statistics manager Tehseen Islam said record imports in September led to the largestever monthly goods trade deficit, of $1.6 billion.
‘‘This month’s record imports continue the high values seen since May 2018,’’ he said.
The monthly imports value had been more than $5 billion for the past five months, in part reflecting high prices for imported fuel and crude oil.
Mr Islam said the leading contributor to the rise in total imports was petroleum and products, up by $366 million, or 87% from September last year; led by crude oil, up by
$278 million and fuels, up by
$86 million.
Exports were up $536 million, or by 14%, to reach $4.3 billion.
Mr Islam said the leading contributor to the rise in total exports was fruit, up by
$188 million or 118%, led by gold kiwifruit, up $122 million, and green kiwifruit, up by
$62 million, he said.