Stink bug discovery affects imports, trade deficit

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New Zealand's trade deficit narrowed in November as a stink bug discovery reduced imports, while exports rose sharply.

The November deficit was a seasonally adjusted $402 million versus a deficit of $707 million in October, Statistics New Zealand said. The annual deficit was $5.4 billion, also in line with expectations.

November imports eased 0.6 per cent on the year to $5.8 billion with the largest fall being in passenger motor car imports, down 35 per cent due to a delay in final unloading of one cargo ship in November.

"In a repeat of events in February this year, another vessel was ordered to leave New Zealand waters in November due to the discovery of stink bugs," international statistics manager Tehseen Islam said.

In late November, Biosecurity New Zealand directed a vehicle carrier to leave New Zealand waters following the discovery of stink bugs and other regulated pests.

Islam noted, however, after some car shipments were blocked in February, car imports bounced back in the following months.

Aircraft and parts posted the next largest decline, down 48 per cent from the same month last year at $153 million. Aircraft imports are irregular and can cause large rises or falls in monthly figures.

The fall in imports was offset by rises across a range of other commodities, including fertilisers, soya bean oil cake, and palm oil cake, Stats NZ said.

Monthly goods exports were up 71 per cent at $4.9 billion.

Exports of aluminium and beef were the leading contributors to the rise in exports, with aluminium up $59 million, or 142 per cent, from November 2017 when values and quantities had been unusually low.

Meat and edible offal rose $56 million, or 11 per cent, to $553 million. Beef rose $51 million, or 28 per cent, in value and 30 per cent in quantity.

The largest rise in beef exports was to China, up $32 million.

Milk powder, butter, and cheese exports rose $30 million, or 2.1 per cent, to $1.5 billion.
Fruit exports climbed $32 million, or 60 per cent, to $86 million.

That was led by green kiwifruit, up $34 million, or 167 per cent in value and 162 per cent in quantity.