Exports and imports decline

Merchandise exports fell $243 million (6.6 percent) in February 2009 compared with February 2008, Statistics New Zealand said today. The value of merchandise imports fell $490 million (14.2 percent) over the same period.

This is the first fall in exports since August 2007. The fall was led by decreases in milk powder, butter and cheese, down $288 million mainly due to a decrease in whole milk powder. Prices were generally lower for commodities throughout this category. The largest offsetting increase was from a $120 million rise in meat and edible offal, led by lamb cuts.

This month’s fall in imports (14.2 percent) is the largest in 16 years, and was led by a fall in crude oil imports of $265 million (70.1 percent). The fall in crude oil was mainly due to much lower quantities being imported. The timing of crude oil shipments is irregular and can cause large percentage fluctuations in the total imports series. Passenger motor cars were down $158 million (62.5 percent) to their lowest value for any month since January 1994.

In February 2009, the monthly trade balance was a surplus of $489 million, or 14.2 percent of exports. The trade balance tends to be in surplus in February months, however, as a percentage of exports, this month recorded the highest February surplus since 2001.

The New Zealand exchange rate as measured by the Reserve Bank’s Trade Weighted Index (TWI) has fallen 28.3 percent since February 2008. A decreased dollar value has an upward influence on prices for both exports and imports.