- Westpac Banking Corp.
New Zealand trade surplus expanded more than expected in February as the export of a large drilling platform boosted overall exports. Nevertheless, the broader picture shows that New Zealand's trade remains weak amid low global dairy prices. The trade surplus rose from a revised NZ$13 million in January to NZ$339 million last month, the highest in nine months, according to Statistics New Zealand. Analysts, however, had predicted a modest $57 million surplus. Exports jumped 9.3% to NZ$4.25 billion in February, led by the shipment of a large drilling platform. Excluding the drilling platform, overall exports rose only 2.5% last month. Exports of milk powder, butter and cheese, New Zealand's largest export product group, surged 9.2% for the month. A sharp decline in global dairy prices over the last two years has eroded New Zealand's export takings and slowed economic growth from an annual rate of around 3.5% in 2014 to around 2.5% last year. New Zealand's GDP grew 0.9% in the fourth quarter, matching the pace in the previous three months, Statistics New Zealand reported. At the same time, imports rose 2.8% to $3.9 billion, with consumption goods and intermediate goods rising in value, up 12% and 0.6% respectively, but capital goods declining 3.8%. New Zealand's trade deficit contracted from $3.5 billion in the year ended January 2016 to $3.3 billion in the 12 months ended February.
© Dukascopy Bank SA