Exports and imports both down, trade deficit at $2.2 billion

Significant shifts in kiwifruit and aluminium exports influenced overseas trade last month. Photo / Michael Craig

Exports and imports both declined in August, compared to last year.

But the value of imports fell faster than exports, according to new data from Stats NZ.

Exports of fruit, wood pulp and waste paper, and machinery were all up last last month, compared to August 2023. Stats NZ said kiwifruit exports rose $177 million or 58%.

Exports of meat were down 19% from a year earlier and aluminium was down 34% or $49m as the Tīwai Point aluminium smelter announced cuts to production, which it blamed on the energy crisis.

Stats NZ said sheep meat exports fell $64m (27%) to $170m and beef fell $51m (15%) to $286m.

Imports of aircraft and aircraft parts, food residues, ships and boats were up.

By far the biggest year-on-year decline for imports was with vehicles and related parts and accessories, down $478m or 42%.

Overall, goods exports fell by 0.1% to $5 billion. Overall goods imports fell by 1% to $7.2b and the overall trade deficit was $2.2b.

ANZ agriculture economist Susan Kilsby told the Herald that exports in August were slightly weaker than expected and imports were slightly stronger.

She said fertiliser imports were up after a time of belt-tightening.

“On the export side, we did see strength in the kiwifruit sector, which we expected with the larger crop coming through.”

Imports of cars, car parts and related accessories were down 42% year-on-year. Photo / Jason Oxenham

Kilsby said August was usually a fairly subdued month for dairy exports, and the fall in meat exports reflected the fact not many livestock were around to be processed in winter.

On what September likely held in store for the trade deficit, Kilsby said it would still probably be a subdued month for exports.

Imports were less predictable, Kilsby said.

“It’s hard to say but with everything related to consumers, the demand is still pretty slow.”