Higher dairy exports narrow NZ trade deficit
almost $400 million, compared to the same time last year, helping
the small country narrow its trade deficit for the first time in 22
months.
Statistics New Zealand said today that total exports during March were 13.8 per cent higher than in March 2005 at NZ$3.18 billion, with milk powder, butter and cheese among the main contributors. Dairy products make up a sixth of all of New Zealand's exports.
The figures show that milk powder, butter and cheese increased 3.7 per cent during the quarter to end of March, following an increase of 10 per cent in the December 2005 quarter. Milk powder had the biggest impact on dairy exports, said the statistics bureau.
Dairy product exports are now up NZ$270 million during the year to end of March, compared with the prior year.
Preparations of cereals, flour and starch have also increased, up $176 million over the 12 months, but export values for meat and edible offal fell by $275 million and fruit sales were down by $175 million.
But of New Zealand's top five trading partners, exports for the March 2006 year increased only to Australia. Exports to the US, the United Kingdom and Japan all decreased by 5 per cent or more.
Soaring imports pushed New Zealand's annual trade deficit to a record in February. But in the three months ended March 31, imports rose 11 per cent, three times the pace of exports. The increase in exports during March was the first increase in three months. Economists had expected exports to rise by 2 per cent.
New Zealand's dollar has slumped 7.6 per cent this year, the world's worst-performing major currency, and buoying exports, which make up 30 per cent of the $108 billion economy. Reserve Bank Governor Alan Bollard said he expected exports to increase this year while consumer spending slows.
