Export strength shining through

By Phil Boeyen, ShareChat Business News Editor

Monday 29th April 2002

New Zealand's annual trade surplus has topped the $800 million mark after putting on a strong performance in March.

Provisional figures from Statistics New Zealand show imports for March at $2.569 billion and exports at $3.02 billion, resulting in a $451 million surplus for the month.

The figure compares to a surplus of $276 million in February.

"The surplus is 14.9% of merchandise exports. If confirmed, this surplus would be the largest percentage of merchandise exports for a March month since 1994," Statistics NZ says.

HSBC says the second highest merchandise exports on record helped boost the trade balance to the $451 million surplus.

"This was well above market expectations for a modest $33 million surplus, and was the highest monthly surplus since last May," the bank says.

"It follows a revised $276 million surplus in February, and has seen the annual trade balance increase to $804 million for the twelve months to March."

The bank says that the 10% increase in merchandise imports in March was well below the average 19% March increases recorded in the previous three years.

"Today's trade numbers are consistent with a solid domestic economy and a resilient export sector. That adds modestly to upside risks for monetary policy."

HSBC says it continues to favour a third 25 basis point increase in the official cash rate on May 15, but notes that if wage and employment data due in the next week are strong the rate could be notched up 50 points. That would take the OCR from 5.25% to 5.75%.

Comments from our readers

No comments yet