Exports and imports higher, but growth rate eases

The value of merchandise exports was 13.8 percent higher in October 2008 than in October 2007, andreached $3.8 billion, Statistics New Zealand said today.

Imports were up 15.3 percent to $4.8 billion overthe same period.The growth in the exports trend has eased since January 2008 following a period of strong growth betweenJune 2007 and then.

The slower trend growth in 2008 coincided with the drought in the early part of theyear. More recently, crude oil exports have stabilised with quantities now similar to the second half of2007 – the Tui oil field completed it first full year of operation in July 2008.

The imports trend continues togrow but appears to be easing in recent months.Milk powder, butter and cheese (up $123 million) led the exports increase in October 2008 compared withOctober 2007.

Meat and edible offal, and logs, wood and wood articles were both up $68 million in October2008.

Petroleum and products led the increase in the value of merchandise imports in October 2008 comparedwith October 2007, with crude oil the largest contributor.

The increase in petroleum and products was partlyoffset by a fall in ships, boats and floating structures, which were down from a high level in October 2007when an oil rig was imported.

The value of passenger motor car imports fell to an eight-year low of $221 million in October 2008, as adecline in the number of cars with engines larger than 1500cc has been only partly offset by an increase inthe number of smaller cars.

In October 2008, the value of the monthly trade balance was a deficit of $942 million.

Although this is thesecond largest deficit for an October month in dollar terms, as a percentage of exports it is below theaverage for October for the preceding five years.

Dallas Welch (Mrs)Acting Government Statistician

27 November 2008

END

See also the Hot Off The Press information release Overseas Merchandise Trade: October 2008.