New Zealand’s trade balance reported a deficit of NZD -257m in February as imports surged far ahead of modest export gains. Goods exports edged up just 0.4% yoy to NZD 6.6B, while imports jumped 12% yoy to NZD 6.9B.
Export dynamics were mixed across major trading partners. Shipments to China fell -3.6% yoy, while exports to Japan dropped sharply by -14%, highlighting softness in key Asian demand channels. In contrast, exports to the US rose 8.2% and EU surged 15%, providing some offset and pointing to diversification in external demand. Exports to Australia also posted a modest 2.0% gain.
On the import side, strength was broad-based and pronounced. Imports from South Korea surged 79% yoy, while shipments from Australia and EU rose 30% and 16% respectively. Imports from China also climbed 15%. The sharp rise in imports relative to exports signals ongoing pressure on New Zealand’s external accounts and could weigh on NZD, particularly as growth momentum remains fragile.
