Imports show large drop and exports also down

The value of both merchandise imports and exports fell in July 2009 compared with July 2008,down 20.9 percent and 7.3 percent respectively, Statistics New Zealand said today.

In percentage terms, the decrease in imports is the second largest monthly fall since February 1993and closely follows the 21.8 percent fall in May 2009.

The July 2009 fall in imports is from a highlevel in July 2008.Most import categories showed decreases in July 2009, with significant contributions comingfrom imports of petroleum and products, down $294 million (35.1 percent), and vehicles, parts,and accessories, down $220 million (46.2 percent).

The $252 million decrease in export values in July 2009 was led by a price-driven decrease incrude oil exports, down $119 million (37.8 percent).

Meat and edible offal exports were down $50million (11.5 percent), due to lower quantities. The value of New Zealand’s largest exportcategory, milk powder, butter and cheese, was almost the same as July 2008, despite quantitiesbeing over 50 percent higher.

The trends for merchandise import and export values both peaked in the latter half of 2008 andhave been declining since then, with imports showing the largest decline.

The trend for the valueof merchandise imports has been declining since August 2008, and is down 22.5 percent sincethen. In comparison, the trend for the value of merchandise exports has been declining since October 2008, and is down 7.4 percent since then.

The trade balance for July 2009 was a deficit of $163 million, or 5.1 percent of the value ofexports. This compares with an average July deficit of 23.6 percent of exports for the previousfive years.

Geoff Bascand
27 August 2009
Government Statistician