WELLINGTON - Exports to Asia are starting to slog their way back to pre-crisis levels after a year that has sorely tested exporters.
Trade figures released yesterday show provisional exports to Asia of $612 million in November.
Although this is still 3.3 per cent down on November 1997, the gap between 1998
and 1997 figures is drawing closer. November's 3.3 per cent fall compares with a 6.1 per cent drop from October 1997 to October 1998.
Releasing the figures, the Deputy Government Statistician, Dianne Macaskill, said trend figures for exports to Asia showed small but steady growth for the past four months after a year of decline caused by the Asian crisis.
They showed New Zealand's trade balance was in deficit by $441 million in November, compared with a $61 million deficit in November 1997 and a revised $428 million deficit in October.
Statistics New Zealand said deficits were typical in November. The latest imbalance was boosted by the import of large aircraft valued at $273 million.
November provisional exports totalled $1.94 billion, up 10.2 per cent on November 1997, and imports $2.38 billion, up 30.7 per cent, accounting for the deficit.
While Asian figures are still down, exporters appear to have been growing other markets.
Exports to the United States were particularly strong in November, up 56.6 per cent on 1997 at $273 million, largely reflecting increased earnings from dairy product and meat exports.
Exports to Australia and Europe rose 6.7 per cent and 9 per cent respectively to $387 million and $307 million, while November exports to the United Kingdom were 14.2 per cent lower at $117 million.
The Treasurer, Bill Birch, said the figures supported the view an export-led recovery was well under way in the second half of 1998.
Dianne Macaskill said the trend in the merchandise trade balance was for slow, steady growth.
"Economic difficulties in several export markets continue to offset some of the benefit to export figures caused by the lower New Zealand dollar."
The Bank of New Zealand economist Peter Jolly said the latest data showed encouraging signs for growth and the current account.
"However we are unlikely to see a significant pick-up in exports until world growth prospects improve next year." - NZPA
