NZ posts monthly trade deficit on aircraft purchases

NZ posts monthly trade deficit as aircraft purchases stoke imports

Jan. 31 (BusinessDesk) – New Zealand posted its sixth straight monthly trade deficit in December as purchases of aircraft and parts drove up imports, outpacing an increase in exports.

The trade deficit widened to $250 million last month, from a gap of $186 million in November, according to Statistics New Zealand. Imports rose 18% to $4.1 million and exports climbed 11% to $3.8 million. The deficit was more than double the $100 million forecast in a Reuters survey though the monthly figures tend to reflect the volatility of trade flows and large one-time items.

Growth in exports was led by shipments of milk powder, butter and cheese, which climbed $245 million, or 31% in December. Meat climbed by $101 million, or 25%. Growth in exports of food commodities comes as global prices reach record highs, fanning concerns about food riots in developing nations. The value of shipments of dairy and meat rose to China, Japan, Venezuela and Iran, while log exports rose to China and Japan.

Excluding the one-off importation of aircraft from the U.S., imports would have gained 11% in the latest month.

In calendar 2010, the trade surplus was a revised $1.13 billion, down from a revised $1.36 billion in the 12months through November and mainly reflecting December’s one-time aircraft purchases.

(BusinessDesk)

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