New Zealand trade balance deficit narrowed more than forecasts in November reaching the lowest level in more than seven years on the yearly record. Exports rose in November alongside recovery in global demand, while imports fell to a six month low that helped to narrow the nation's shortfall.
New Zealand trade balance deficit narrowed in November to record NZ$269 million compared with a previous deficit of NZ$487 million that was revised to NZ$495 million, while forecasts referred to NZ$299 million. The shortfall narrowed to NZ$846 million in the year ended November 30 from a revised deficit of NZ$1.17 billion.
Moreover, exports recorded NZ$3.07 billion in November compared with NZ$2.97 billion in October and it came less than analyst's estimates of NZ$3.18 billion. As for the nation's imports, it recorded NZ$3.34 billion less than the previous NZ$3.45 billion, while it was anticipated to record NZ$3.42 billion.
Weak domestic demand was the main reason behind the sharp decline in imports we witnessed last year, especially with unemployment continue to rise and income levels declining, worth mentioning that unemployment rate rose to 6.5% in the quarter ended September as the ongoing pressure of the recession still weakening the business sector.
On the other hand, the New Zealand dollar gains against its American counterpart and other major currencies still pressuring exports, the main pillar for economic growth, which is giving signs that the nation's trade deficit may not narrow further as exports still weak.
Today's report showed that purchases of crude oil, fertilizer, diesel, and mechanical equipment and computer parts dropped. Yet, shipments showed improvements in November from the previous month, having the value of crude oil exports climbing 89%, but shipments of milk powder, butter and cheese that make up about one fifth of total exports, dropped 25%.
Exports fell 17% in November from a year earlier, as the whole milk powder shipments slipped 22% alongside declining prices that corroded the increase in shipments volume, noteworthy that the volume of milk powder shipments gained 48% in November from a year ago.
Consumer spending that accounts for 60% of the GDP is anticipated to heal during this year, so we may see demand for imported cars and electronics rising. Yet, exports are also expected to rise as the world demand is picking up that is helping New Zealand economy to gain back the support of its exports sector to accelerate economic growth.
New Zealand economy expanded 0.2% in the third quarter of last year, following an expansion in the same pace in the second quarter, after the economy started to shrink since the first quarter of 2008. Yet, the Reserve Bank expected growth to average 0.9% a quarter through 2010.
New Zealand trade balance deficit narrowed more than forecasts in November reaching the lowest level in more than seven years on the yearly record. Exports rose in November alongside recovery in global demand, while imports fell to a six month low that helped to narrow the nation's shortfall.
New Zealand trade balance deficit narrowed in November to record NZ$269 million compared with a previous deficit of NZ$487 million, while forecasts referred to NZ$299 million. The shortfall narrowed to NZ$846 million in the year ended November 30 from a revised deficit of NZ$1.17 billion.
Moreover, exports recorded NZ$3.07 billion in November compared with NZ$2.97 billion in October and it came less than analyst's estimates of NZ$3.18 billion. As for the nation's imports, it recorded NZ$3.34 billion less than the previous NZ$3.45 billion, while it was anticipated to record NZ$3.42 billion.
Weak domestic demand was the main reason behind the sharp decline in imports we witnessed last year, especially with unemployment continue to rise and income levels declining, worth mentioning that unemployment rate rose to 6.5% in the quarter ended September as the ongoing pressure of the recession still weakening the business sector.
On the other hand, the New Zealand dollar gains against its American counterpart and other major currencies still pressuring exports, the main pillar for economic growth, which is giving signs that the nation's trade deficit may not narrow further as exports still weak.
Today's report showed that purchases of crude oil, fertilizer, diesel, and mechanical equipment and computer parts dropped. Yet, shipments showed improvements in November from the previous month, having the value of crude oil exports climbing 89%, but shipments of milk powder, butter and cheese that make up about one fifth of total exports, dropped 25%.
Exports fell 17% in November from a year earlier, as the whole milk powder shipments slipped 22% alongside declining prices that corroded the increase in shipments volume, noteworthy that the volume of milk powder shipments gained 48% in November from a year ago.
Consumer spending that accounts for 60% of the GDP is anticipated to heal during this year, so we may see demand for imported cars and electronics rising. Yet, exports are also expected to rise as the world demand is picking up that is helping New Zealand economy to gain back the support of its exports sector to accelerate economic growth.
New Zealand economy expanded 0.2% in the third quarter of last year, following an expansion in the same pace in the second quarter, after the economy started to shrink since the first quarter of 2008. Yet, the Reserve Bank expected growth to average 0.9% a quarter through 2010.
New Zealand trade balance deficit narrowed in November to record NZ$269 million compared with a previous deficit of NZ$487 million that was revised to NZ$495 million, while forecasts referred to NZ$299 million. The shortfall narrowed to NZ$846 million in the year ended November 30 from a revised deficit of NZ$1.17 billion.
Moreover, exports recorded NZ$3.07 billion in November compared with NZ$2.97 billion in October and it came less than analyst's estimates of NZ$3.18 billion. As for the nation's imports, it recorded NZ$3.34 billion less than the previous NZ$3.45 billion, while it was anticipated to record NZ$3.42 billion.
Weak domestic demand was the main reason behind the sharp decline in imports we witnessed last year, especially with unemployment continue to rise and income levels declining, worth mentioning that unemployment rate rose to 6.5% in the quarter ended September as the ongoing pressure of the recession still weakening the business sector.
On the other hand, the New Zealand dollar gains against its American counterpart and other major currencies still pressuring exports, the main pillar for economic growth, which is giving signs that the nation's trade deficit may not narrow further as exports still weak.
Today's report showed that purchases of crude oil, fertilizer, diesel, and mechanical equipment and computer parts dropped. Yet, shipments showed improvements in November from the previous month, having the value of crude oil exports climbing 89%, but shipments of milk powder, butter and cheese that make up about one fifth of total exports, dropped 25%.
Exports fell 17% in November from a year earlier, as the whole milk powder shipments slipped 22% alongside declining prices that corroded the increase in shipments volume, noteworthy that the volume of milk powder shipments gained 48% in November from a year ago.
Consumer spending that accounts for 60% of the GDP is anticipated to heal during this year, so we may see demand for imported cars and electronics rising. Yet, exports are also expected to rise as the world demand is picking up that is helping New Zealand economy to gain back the support of its exports sector to accelerate economic growth.
New Zealand economy expanded 0.2% in the third quarter of last year, following an expansion in the same pace in the second quarter, after the economy started to shrink since the first quarter of 2008. Yet, the Reserve Bank expected growth to average 0.9% a quarter through 2010.
New Zealand trade balance deficit narrowed more than forecasts in November reaching the lowest level in more than seven years on the yearly record. Exports rose in November alongside recovery in global demand, while imports fell to a six month low that helped to narrow the nation's shortfall.
New Zealand trade balance deficit narrowed in November to record NZ$269 million compared with a previous deficit of NZ$487 million, while forecasts referred to NZ$299 million. The shortfall narrowed to NZ$846 million in the year ended November 30 from a revised deficit of NZ$1.17 billion.
Moreover, exports recorded NZ$3.07 billion in November compared with NZ$2.97 billion in October and it came less than analyst's estimates of NZ$3.18 billion. As for the nation's imports, it recorded NZ$3.34 billion less than the previous NZ$3.45 billion, while it was anticipated to record NZ$3.42 billion.
Weak domestic demand was the main reason behind the sharp decline in imports we witnessed last year, especially with unemployment continue to rise and income levels declining, worth mentioning that unemployment rate rose to 6.5% in the quarter ended September as the ongoing pressure of the recession still weakening the business sector.
On the other hand, the New Zealand dollar gains against its American counterpart and other major currencies still pressuring exports, the main pillar for economic growth, which is giving signs that the nation's trade deficit may not narrow further as exports still weak.
Today's report showed that purchases of crude oil, fertilizer, diesel, and mechanical equipment and computer parts dropped. Yet, shipments showed improvements in November from the previous month, having the value of crude oil exports climbing 89%, but shipments of milk powder, butter and cheese that make up about one fifth of total exports, dropped 25%.
Exports fell 17% in November from a year earlier, as the whole milk powder shipments slipped 22% alongside declining prices that corroded the increase in shipments volume, noteworthy that the volume of milk powder shipments gained 48% in November from a year ago.
Consumer spending that accounts for 60% of the GDP is anticipated to heal during this year, so we may see demand for imported cars and electronics rising. Yet, exports are also expected to rise as the world demand is picking up that is helping New Zealand economy to gain back the support of its exports sector to accelerate economic growth.
New Zealand economy expanded 0.2% in the third quarter of last year, following an expansion in the same pace in the second quarter, after the economy started to shrink since the first quarter of 2008. Yet, the Reserve Bank expected growth to average 0.9% a quarter through 2010.
