- Statistics New Zealand
New Zealand's annual trade deficit hit its highest level in nearly seven years, due to steep declines in dairy products. According to Statistics New Zealand, imports exceeded exports to the tune of $3.8 billion in the year to March, the largest gap since the $4.1 billion recorded in April 2009. Exports plunged 14.3% year-over-year to $4.2 billion, driven by a 29% dive in dairy exports. The export value of whole-milk powder, New Zealand's biggest export commodity, plummeted 42% compared to the same month a year earlier, with quantity down 41%. Analysts expect the deficit to widen further due to lower dairy prices, recent weakness in meat exports, and solid household demand for imports.
The monthly trade surplus contracted from a revised $367 million in February to $117 million last month, according to Statistics New Zealand, compared with the forecast of a surplus worth $400 million. Imports slipped 3.7% over the same period to $4.1 billion, due largely to lower capital goods as well as a decline in international oil prices, which lowered intermediate goods imports. China remained the country's top trade partner for both exports and imports, followed by Australia. Exports to China decreased 4.1% from a year ago in March, while exports to Australia fell 3.3%.
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