NZ posts wider than expected December trade deficit

By NZPA

Wednesday 29th January 2003

Merchandise trade figures for December show a wider than expected preliminary trade deficit of $299 million.

Statistics New Zealand said the December year deficit was $1.34 billion.

Market expectations were for a median deficit of $163 million for the month, and a $1.2 billion deficit for the year.

Statistics NZ said the latest deficit, 12.6 percent of exports, was higher than normal for a December month.

Provisional imports for December were $2.669 billion and exports were an estimated $2.37 billion.

The seasonally adjusted value of imports fell by 2.2 percent in the December quarter, following a 2.6 percent rise in September. Imports of intermediate and consumption goods fell while capital goods rose, largely due to the importation of six large aircraft worth more than $200 million in total.

During the quarter, Statistics NZ noted, the soaring New Zealand dollar pushed the trade weighted index up 4.8 percent. A rising kiwi dollar makes imports cheaper.

For the year, imports totalled a provisional $32.355 billion, 2.1 percent higher than the previous December year.

December's figure compares with a November month deficit of $418 million, better than economists' forecasts of a $500 million deficit.

It followed an October trade deficit of $690 million, the worst October figure in 13 years.

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