New Zealand Exports Jump 18%, But Faster Import Growth Limits Trade Surplus

New Zealand recorded a goods trade surplus of NZD 800m in May, slightly below expectations of NZD 875m, as strong export growth was more than offset by an even larger increase in imports. Goods exports rose NZD 1.4b, or 18% yoy, to NZD 8.9b, while imports climbed NZD 1.7b, or 26% yoy, to NZD 8.1b. The figures point to healthy trade activity but also suggest resilient domestic demand and rising import requirements.

Export performance was broad-based across New Zealand’s major trading partners. Exports to the United States rose NZD 265m, or 29%, led by a surge in meat shipments. Australia recorded a NZD 255m increase, with gains spread across precious metals, pharmaceuticals and steel products. Exports to China rose NZD 196m, supported by stronger shipments of meat, dairy products and seafood, while exports to the European Union and Japan increased by NZD 110m and NZD 120m respectively. The data indicate that external demand remained resilient despite a slowing global growth backdrop and recent geopolitical uncertainty.

Imports also rose sharply, reflecting both stronger domestic activity and higher purchases of key goods. Imports from South Korea surged 79%, driven overwhelmingly by petroleum products. Imports from China, the European Union, Australia and the United States all posted double-digit gains, led by vehicles, machinery and pharmaceutical products. While the narrower-than-expected surplus may appear disappointing at first glance, the composition of the report suggests trade flows remain robust on both sides of the ledger. The strong rise in imports alongside healthy exports points to an economy that continues to benefit from improving external demand while maintaining solid domestic spending momentum.

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Full NZ trade balance release here.