In Q2 2023, New Zealand’s goods terms of trade rose by a 0.4%, much better than expectation of -1.3% decline. Both export and import prices for goods witnessed a dip, falling -0.6% and -1.0% respectively. Export volumes surged 6.8%, while import volumes declined by -2.8%, suggesting robust external demand and potentially cautious domestic consumption.
The services sector terms of trade rose significantly by 4.4%, a robust figure indeed. Export prices for services edged up 0.3%, whereas import prices saw a more considerable decline of -3.9%.
Alasdair Allen, international trade manager, highlighted that New Zealand typically enjoys a trade surplus with China, increasingly driven by trade in goods. The trade surplus for Q2 stood at a NZD 2.0B, with total goods and services exports to China valued at NZD 5.8B, and imports at NZD 3.8B. Notably, there have been only three quarterly goods deficits with China over the past five years.
