By BRIAN FALLOW
New Zealand's trade balance continues its trek back towards the black, with a provisional deficit of $52 million in June.
That trimmed the annual shortfall to $3.19 billion from $3.32 billion in May.
Imports were up 21 per cent on June last year, but boosted by aircraft imports (worth around $90 million) and higher oil prices. Excluding aircraft, imports were up 15 per cent, two-thirds of which reflected a weaker exchange rate.
For the second month in a row, exports were 30 per cent up on the same month last year.
In the June quarter exports were 25 per cent up on the same period last year, the strongest three-month growth rate since 1989 and well ahead of import growth.
Bank of New Zealand economists said conditions for exporting were about the best they had been for some time.
World growth was good, the rural sector was in good shape, commodity prices were rising (though likely to peak soon) and the currency competitive.
Imports of consumer goods, excluding vehicles, in the June quarter were up 10 per cent on the same period last year, or flat when adjusted for the weaker exchange rate. But imports of plant and machinery were 18 per cent higher.
Deutsche Bank economist Darren Gibbs said prospects for the economy remained brighter than some commentators had suggested.
The bank expects the improving trade balance to lead to a modest improvement in the current account, reducing the deficit to 7.1 per cent of gross domestic product by March next year from 8.2 per cent now.
Growth despite gloom
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