Following up a horror September quarter current account deficit, New Zealand posted a $679 million trade deficit in November, Statistics New Zealand said today.
The deficit was far worse than economists' estimates of $467m, and swelled the annual trade deficit to $4.19 billion.
The preliminary figures showed November imports at
$3.3 billion -- the highest ever recorded in a month.
The previous highest month was November 2000, when a ferry was imported.
The deficit equated to a quarter of exports. The average November trade balance for the previous 10 years was a deficit of $380m, or 17.8 per cent of exports. Only twice before have these deficits exceeded a quarter per cent of exports.
The value of imports for November was 18.6 per cent higher than for November 2003.
A broad range of commodities contributed to this. However, mechanical machinery and equipment, cars, diesel, and crude oil were the largest contributors.
Imports of new cars with engine sizes exceeding 3000cc recorded a high for both quantity and value for November 2004. A large proportion of cars of this size were imported from Australia during this month.
The estimated value of exports for November 2004 was $2.62 billion.
Earlier this week, New Zealand posted a September quarter deficit of $4.22 billion on the current account (measuring all New Zealand's dealings with the outside world including trade and invisibles such as loans).
The annual current account deficit of $8.23 billion, equating to 5.8 per cent of GDP, is seen by economists as unsustainable.
- NZPA
