NZ: Trade surplus prints $12m in February - Westpac
Michael Gordon, analyst at Westpac, points out that the New Zealand recorded a small trade surplus of $12m in February as exports bounced back from an unusually weak January.
Key Quotes
“In seasonally adjusted terms, exports rose by 7.7% in February, reversing most of an 8.6% decline in January. There were large gains in dairy, reflecting the strong growth in milk production during spring and early summer, and a rebound in meat exports.”
“Imports were up 0.7% in seasonally adjusted terms. Oil import volumes pulled back from an elevated level, while imports of capital equipment and consumer goods remained strong.”
“The annual trade deficit widened further to $6.62bn, the largest since July 2006. Export earnings have been growing modestly, and will soon receive a further boost from the sharp rise in dairy prices at recent auctions. However, the growth in exports has been outweighed by a strong rise in imports, reflecting the growth in domestic demand. Higher oil import prices also played a role over 2018, but they have eased back in recent months. We expect the trade deficit to narrow again by the end of this year.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
