- Jason Attewell, Statistics New Zealand international statistics manager
New Zealand recorded its first monthly trade deficit in nine months in July amid falling prices for export logs and wood products. Statistics New Zealand said the country posted a trade deficit of $692 million in July, compared to the $475 million deficit forecasted by economists. Exports in July dropped 3.3% from the same month a year earlier to $3.7 billion, lower than the $3.98 billion expected by economists. Imports dropped 4.8% to $4.4 billion, close to the $4.5 billion forecast. While dairy exports inched higher 0.9% in July from a year earlier, this compares with annual export growth for dairy products ranging between 34%-84% in the 10 months prior to July.
While China remained New Zealand's largest trading partner, New Zealand goods destined for the Asia's largest economy declined as much 5.4% to $615 million in the year to July, with declining demand for pine logs and infant formula partly offset by an increase in milk powder exports. Exports to Australia, New Zealand's second largest trading partner, dropped 7.1% to $687 million in the month over a range of commodities. However exports to the U.S., the third largest market, advanced 18% to $363 million, led by casein and caseinates and frozen beef.
Shortly after the data release the Kiwi Dollar weakened versus the Greenback, losing 0.30% to trade at $0.8317
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