New Zealanders are driving, eating and drinking themselves deeper into economic difficulty, new trade data suggests.
The preliminary March trade balance was today reported as a deficit of $192 million - substantially worse than economists' expectations of a $50 million surplus.
It takes the March year trade deficit to $4.37billion, New Zealand's worst ever trade deficit in nominal terms, and about 2.9 percent of GDP.
Economists say the worsening trade deficit will likely see New Zealand's current account, the measure of our dealings with the rest of the world, deteriorate to historic lows.
Today's figure came on falling export receipts and rising imports of consumer goods.
While imports for the month at $2.99 billion topped forecasts by about $90m, Statistics New Zealand's (SNZ) preliminary estimate of exports for the month at $2.8 billion was $150 million above consensus expectations. Detailed March export figures will be released on May 9.
Imports for the month were up 9.3 percent on March last year while exports were up just 0.5 percent.
SNZ said the increase in imports for the month was driven by crude oil and petroleum products, vehicles and associated goods, and mechanical and electrical machinery.
It also said a 3.7 percent increase in imports over the three months to March was driven largely by a 4.4 percent rise in imports of consumption goods -- particularly food and beverages.
BNZ economist Stephen Toplis said if adjusted for the rising New Zealand dollar, March imports were up 17.2 percent on the same month a year ago.
He said today's "nerve wracking" data meant the BNZ now expected the current account deficit to rise to 6.7 percent of GDP for the year ended March, up from 6.4 percent for the year to December.
"We still believe the (current account) deficit will push through the 8.0 percent of GDP before the peak is reached," Mr Toplis said in commentary.
Mr Toplis said the BNZ was surprised by the soft exports number but said that may be partly due to timing issues in the agricultural exports sector.
Deutsche Bank economist Ulf Schoefisch did not expect the trade deficit to bottom out until the middle of next year.
