-Jason Attewell, Statistics New Zealand
New Zealand's trade deficit widened more than expected in September, largely due to swiftly falling dairy prices, while the import of aircrafts pushed the trade balance to its worst monthly value ever. The trade deficit expanded to $NZ1.35 billion in September, up from a revised NZ$489 million trade gap in the preceding month, Statistics New Zealand reported, whereas analysts' forecast a $NZ625 million. Exports dropped 5.3% to $NZ3.6 billion from the same month a year earlier. Imports, however, soared 23% to $NZ4.97 billion. New Zealand has benefited from strong terms of trade this year as demand for dairy products and logs in China boosted exports, while a historically strong Kiwi dollar makes costs of imported goods low. Dairy and log prices have since dropped from their highs, easing the New Zealand's trade outlook.
On an annual basis New Zealand had a trade surplus of $NZ648 million as exports surged 11% to $NZ51.02b on year, while annual imports increased 5.9% to $NZ50.38 billion. Australia overtook China as New Zealand's main export destination in the three months through September, with $NZ2.2 billion worth of goods sold to Australia, and $1.8 billion to China, recording a 12% drop in the value of goods to China. The European Union was New Zealand's third-largest export destination over the quarter, making up $NZ1.1 billion worth of goods.
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