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New Zealand benefited from the trade in goods to the tune of $ 2.2 billion in the year through the end of October as Covid-19 restrictions on travel reduced the country’s imports.
At the same time, New Zealand shipped more of its key products abroad, including dairy and fruit, although exports of seafood and forestry declined.
The annual goods trade surplus was the highest in 28 years, Statistics NZ said Thursday.
“This is the largest annual surplus since July 1992, mainly driven by much lower imports after the global Covid-19 pandemic, while New Zealand’s exports have held up,” said Stats NZ international trade manager Alasdair. Allen, in a statement.
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Hau dinh / ap
New Zealand shipped more of its key products overseas during the year.
“Imports have dropped in part due to restrictions on national and international travel imposed in March to slow the spread of the pandemic. You can see that in the big drops in annual imports of things like turbojets, fuel and cars, ”he said.
Imports for the year were down 10 percent to $ 58 billion and exports were up 1.2 percent to $ 60 billion.
For the month of October, the country had a trade deficit of $ 501 million, almost half the size of the deficit of $ 1.04 billion in October 2019.
Imports generally increased before Christmas, and that was the case for 2020. For the month of October, there was nearly $ 400 million in car imports after a sharp drop in April and May.
Exports fell 4.4 percent to $ 4.8 billion last month compared to the previous year, reflecting a drop in export values for dairy and meat products.
Exports of aircraft and parts increased by $ 69 million in October 2019, as the aircraft were shipped to the United States for long-term storage. Exports of respiratory equipment also increased.
ASB economist Nat Keall said the annual trade surplus was “gigantic.”
“For much of the year, exports have held up particularly well given our close trade exposure to China and the strength of the primary sector.
“Meanwhile, imports have been affected by the shortage of shipping capacity. This month, it is also possible that import activity has been affected by some domestic disruptions, with reports of long delays in unloading at Auckland ports, ”Keall said in a comment.
New Zealand’s trade balance could remain positive for some time, with a growing economic recovery in China’s key market and better prices for key commodities.
However, a return to annual deficits was in sight as the coronavirus pandemic receded and economies recovered across the world.
“The outlook for services exports is not so bright given ongoing border restrictions and the fact that we are in the middle of a global pandemic that shows little sign of slowing down despite positive vaccine news of late,” Keall said.
“The outlook for trade in services remains uncertain and highly contingent on the global launch of the vaccine.”
Stock shortages are likely to worsen in the coming months with global shipping activity above pre-Covid levels, leading to long delays at ports and increasing shipping costs.
