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NZ has third trade surplus in a row, although exports down 4.6% in April

Posted in News

New Zealand recorded a trade surplus of NZ$276 million (7.5% of exports) in April, compared to a deficit of NZ$293 million in April 2008. The value of both exports and imports fell from a year ago, with the fall in exports driven by crude oil and the fall in imports exaggerated by large one-off purchases in April 2008, Statistics New Zealand (Stats NZ) said today.

The fall in imports would have only been 7.3% from a year ago if the one-off items imported in April 2008 were not included in the figures, Stats NZ said. Exports were down 4.6%. In the year ended April 2009, New Zealand's trade deficit was NZ$4.1 billion, the smallest deficit for an April year since 2005.

The fall in both exports and imports from a year ago compared with rises of 18.4% and 4.1% in March, respectively. Both were down from March. The April surplus was the third consecutive monthly trade surplus, following 11 straight months of deficits.

The fall in exports was led by a 61% decline in the value of crude oil exports and a 51% decline in aluminium exports. However, meat and edible offal exports rose 12.5% from April last year; and logs, wood and wood article exports were up 30.8%. Exports of milk powder, butter and cheese were down 5.4%, while fruit exports rose 22.7%.

The slowdown in the New Zealand car market was evident in the figures, with imports of vehicles, parts and accessories down 32.4% in April from a year ago. Imports of petroleum and products were up 4.8%, while electrical machinery and equipment imports were up 6.8%.

On a trade-weighted basis, the New Zealand dollar was down almost 20% from April 2008.

Looks good doesn't it, until

Looks good doesn't it, until you realise if exporters earn less they pay less in tax and can support fewer workers, plus if firms import less they will sell less and make lower profits which means less to pay in tax and they too get to lay off staff. All round loss for the revenue blokes and more red ink for Bill.

Having NZs trade balance in

Having NZs trade balance in surplus and our current account in deficit highlights the fact that New Zealanders do not own enough of New Zealand's economy. I'd be interested in finding out how much our current account deficit would improve by if the big four banks in our banking system were NZ owned. The income they make in New Zealand shows up positively in Australia's current account, while its subtracted from NZ's current account; further draining the economy of capital... I'd be interesting in finding out just how much this is.

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