NZ: Largest trade deficit since 2008 - ANZ

The March trade deficit of -$86m for NZ economy was the largest since 2008 and well below expectations of a $275m surplus, according to Con Williams, Agri Economist at ANZ. 

Key Quotes

“There were some elements of payback from recent months, but the overall picture of a solid export performance based around Asian demand offset by solid domestic economic activity/demand remains. The payback on the import side saw the annual deficit push back to -$3.4bn (toward recent year lows).”

“In seasonally adjusted terms export value fell 2.6% m/m in March. There has been some softness creep in over the first quarter of 2018 (compared with late 2017), but most of this appears to be seasonally driven as opposed to more fundamental.”

“The trade deficit in March was mainly driven by a rebound in crude/petroleum and vehicle imports. In seasonally adjusted terms imports increased 5.3% (after a 5% fall in February).”