November 22nd, 2024
The latest report from StatsNZ on overseas merchandise trade revealed that New Zealand's trade deficit widened in March 2023, as imports surged by 10% compared to the same period last year.
According to the data, published on Wednesday, goods exports in March 2023 rose by a mere 0.6%, amounting to $6.5 billion, while goods imports increased by a significant $719 million, reaching $7.8 billion. The monthly trade balance stood at a deficit of $1.3 billion.
The adverse weather caused by tropical cyclones Hale and Gabrielle in late January and mid-February 2023 impacted the North Island, causing significant damage and disruption. The upcoming trade statistics will continue to monitor the effects of these weather events on trade.
Key commodity groups experience mixed performance
Milk powder, butter, and cheese, which make up New Zealand's largest export commodity group, experienced a $136 million (7%) decline, amounting to $1.8 billion. While cheese exports rose by $36 million (14%) in value, milk powder saw a 13% decrease in value. Meanwhile, preparations of cereals, flour, starch, and milk, including infant formula, experienced a significant 91% increase, contributing $135 million to the overall rise in goods exports.
Meat and edible offal exports faced a decline in March 2023, falling by $66 million (6.6%) to $934 million compared to the same month in 2022. Sheep meat, frozen beef, and fresh beef all saw reductions in value, with frozen beef exports dropping by $25 million (6.2%) and fresh beef exports declining by $9 million (17%).
Napier Port exports continue to struggle
Exports from the Napier port in the North Island saw consecutive monthly declines, falling by $62 million (20%) in January 2023, $103 million (34%) in February 2023, and $112 million (29%) in March 2023 when compared to their respective months in 2022.
Specifically, exports of meat and edible offal from Napier port faced significant declines, dropping by $34 million (26%) in January 2023, $70 million (50%) in February 2023, and $69 million (51%) in March 2023 compared to the same months in 2022. Vegetable exports from the port saw a $13 million (93%) decrease in January 2023, a $4.2 million (24%) decline in February 2023, but experienced a slight increase of $2.7 million (13%) in March 2023 compared to the corresponding months in 2022. Log exports from Napier port showed mixed results, rising by $4.4 million (30%) in January 2023, but dropping by $14 million (36%) in February 2023 and $29 million (74%) in March 2023 compared to the same months the previous year.
New Zealand's trade deficit has widened in March 2023 due to a substantial surge in imports, while exports experienced a modest increase. Key commodity groups faced mixed performance, with some sectors like milk powder, butter, cheese, and meat exports facing declines, while other sectors like preparations of cereals, flour, starch, and milk enjoyed a significant rise. The ongoing impact of tropical cyclones Hale and Gabrielle on trade, particularly in the North Island, will continue to be monitored in upcoming trade statistics.