New Zealand’s trade activity in January showed notable downturn, with goods exports dropping by -7.1% yoy to NZD 4.9B and goods imports declining by a substantial -20.0% yoy to NZD 5.9B. This resulted in trade deficit of NZD -976m, significantly larger than the anticipated NZD -200m.
A closer examination of the data reveals Australia as the leading contributor to the monthly fall in New Zealand’s exports, with a -17% decrease amounting to NZD -112m. Not far behind, Japan saw a dramatic -34% reduction in its exports from New Zealand, translating to NZD -105m. Conversely, EU was a rare bright spot, where New Zealand’s exports actually increased by 5.8%, or NZD 15m. Other major trading partners like China and the USA also experienced declines in exports from New Zealand, by -2.8% (NZD -42m) and -5.6% (NZD -31m), respectively.
On the import side, EU recorded the most significant monthly drop, with imports falling by -33% to NZD -386m. South Korea followed closely with a -34% decrease, equating to NZD -286m. Other notable decreases in imports came from China (NZD -84m, -5.4%), Australia (NZD -57m, -9.2%), and the USA (NZD -30m, -5.6%).
