- Nathan Penny, rural economist at ASB Bank
New Zealand unexpectedly logged its first trade surplus in eight months in January, driven by solid increases in wood and dairy exports. According to Statistics New Zealand, the South Pacific country posted an NZ$8 million trade surplus in the reported month, its first since May 2015, and compared with a year earlier surplus of NZ$52 million and a deficit of NZ$38 million in December. In contrast, economists had expected a NZ$271 million deficit.
Exports surged 5.9% year-on-year to NZ$3.9 billion in January, driven by a 22% advance in wood articles and logs. Dairy exports soared 3.7% to NZ$1.2 billion last month. In the year to January, China was New Zealand's top export destination. Exports to the Asian nation skyrocketed 25% on an annual basis in January, led by a 38% surge in dairy prices. Imports also rose last month, increasing 7.2% from January 2015. However, with the value of dairy exports plunging 17% in the year through January, the country's annual trade deficit widened to NZ$3.58 billion from NZ$3.5 billion in the year-ended December 2015. Economists remain optimistic on the New Zealand economy, which will continue finding support from a booming tourism.
© Dukascopy Bank SA