Trade deficit surpasses $2b a month as fuel, vehicle import spend outstrips export jump

Exports are up - but imports are up a lot more. Photo / Alan Gibson

The trade deficit grew by almost half a billion dollars in October as the cost of fuel surged.

Big jumps in the value of dairy exports were recorded last month but New Zealand was spending more on fuel and vehicles than before.

The monthly trade balance was a deficit of $2.129 billion, up from September’s $1.6b deficit.

Stats NZ data released today also showed the country spent $1.6b more on imports last month than in October 2021.

Total imports in October were $8.3b. Total exports were $6.1b.

Year-on-year comparisons showed a surge in the value of vehicle, fuel, and electrical machinery imports.

But Kiwis were spending less on imported fertilisers, pharmaceuticals and confectionery.

Milk powder, butter and cheese exports were $503 million more valuable last month than in October 2021.

Wine exports jumped by $87m.

For the year ending October 31, annual goods exports were valued at $71.1b, up $9b on the year before.

And goods imports grew faster, valued at $84b, up $17b on the previous year.

Aluminium and fruit exports were down.

And petrol and crude oil exports also fell last month compared to October 2021.

Aussie market more lucrative

Last month, exports to Australia were up by $160m on the previous month.

The value of exports to the US and European Union also increased.

But exports to China fell by $16m, or 0.9 per cent, and exports to Japan fell significantly - by $49m, or 15 per cent.

Electric vehicle imports were up $104m, or 346 per cent.

“Partly offsetting this was a fall in medium-sized petrol vehicles, down $62m (25 per cent), to $185m,” Stats NZ said.

Compared with October 2021, goods exports rose $758m or 14 per cent to $6.1b.

But imports rose $1.6 billion, or almost a quarter, to $8.3b.

The monthly trade balance was a deficit of $2.1b.