Exports rising steadily, imports up but easing

Compared with November 2007, the value of merchandise exports rose 9.4 percent in November 2008 to
reach $3.7 billion, Statistics New Zealand said today. The trend for merchandise exports continues to rise
steadily following a period of strong growth in the second half of 2007. This growth is associated with high
dairy prices and the commencement of Tui oil exports.

Merchandise imports were up 5.2 percent compared with November 2007, to reach $4.2 billion. The imports
trend has eased in recent months, coinciding with falling oil prices.

The trade balance for November 2008 was a deficit of $520 million, or 14.1 percent of the value of exports.
As a percentage of exports, this is the smallest November deficit since 2001.

In November 2008, the increase in exports was led by rises in milk powder, butter and cheese; and logs,
wood and wood articles. Crude oil exports were down compared with the same month last year.

Salt, earths, stone, lime and cement; and fertilizers were the main drivers behind this month’s increase in
merchandise imports. Vehicles, parts and accessories partly offset the rises in other commodities, led by
a decline in passenger motor cars.

In the year ended November 2008, exports to Australia (New Zealand’s largest export destination) have
exceeded $10 billion for the first time. Exports to Australia are up $2.2 billion from the year ended
November 2007, due largely to a $1.4 billion increase in crude oil exports.

Highlights
For the month of November 2008 compared with November 2007 unless otherwise stated:
•
Merchandise exports were valued at $3.7 billion, up $316 million (9.4 percent).
•
Milk powder, butter and cheese (up $94 million) led the increase for exports followed by logs, wood
and wood articles (up $67 million), and meat and edible offal (up $53 million).
•
Merchandise imports were valued at $4.2 billion, up $209 million (5.2 percent).
•
Salt, earths, stone, lime and cement (up $120 million) led the increase for imports with natural
phosphates the main contributor.
•
Vehicles, parts and accessories showed the largest decrease for imports (down $205 million).
•
The monthly trade balance was a deficit of $520 million – as a percentage of exports (14.1 percent),
this is less than the average November deficit of 27.7 percent for the preceding five years.