Quarterly trade deficit improved by record imports drop

The seasonally adjusted trade balance was a deficit of $65 million in the March 2009 quarter, the smallest deficit recorded since June 2002, Statistics New Zealand said today. This quarter’s figure follows five years of quarterly deficits that have generally been in excess of $1 billion, and is the result of a record decrease in imports, coupled with a smaller fall in exports.

The value of seasonally adjusted imports recorded its largest ever fall in the March 2009 quarter, down 12.8 percent ($1.6 billion) compared with the December 2008 quarter. This fall was led by a $1.3 billion decrease in intermediate goods, as falling crude oil prices coincided with a drop in the quantity of oil imported. Passenger motor car imports also fell, down $195 million, with the March 2009 figure representing less than half of the March 2008 value.

The value of seasonally adjusted exports fell 4.0 percent ($449 million) in the March 2009 quarter. This decrease was driven by a price-led fall in milk powder, butter and cheese exports, and falls in crude oil, and aluminium and aluminium articles, where both quantities and prices decreased.

The monthly value of merchandise exports exceeded $4 billion for the first time in March 2009, up 17.7 percent on March 2008, boosted by strong increases in meat and edible offal, and the export of large aircraft. The actual value of merchandise imports also rose in the March 2009 month, up 6.9 percent due to increased imports of mechanical and electrical machinery and equipment. The trade balance for the March month was a surplus of $324 million.