NZ: Strong trade surplus numbers - ANZ

New Zealand’s April trade surplus of $263m was stronger than expected with broad-based strength across most sectors, notes Con Williams, Agri Economist at ANZ. 

Key Quotes

“However, due to a boomer the year before the annual trade deficit pushed back to recent year highs of -$3.8 billion.The big picture view remains the same with broad-based strength across most export sectors. China remains in the driver’s seat, but the more synchronised growth picture over the last year has supported growth to most major markets.”

“In seasonally adjusted terms export values rose 7.2% m/m in April. The charge was led by kiwifruit with export values up 50% y/y. This was partly due to an earlier harvest than last year, but also strong revenue prospects (prices and volumes).”

“It was a similar story to last month on the import side with crude/petroleum and capital imports both notably strong. In seasonally adjusted terms imports increased 0.8% (after a 7.3% increase in March). Crude imports remained strong, supported by higher local prices and some catch-up from lower volumes being imported earlier in the year.”