Due to higher import costs, New Zealand’s gross trade deficit grew in the third quarter of 2022 to NZ$7.5 billion ($4 billion), the country’s statistics department reported on Friday. The rise in goods imports over the last 12 months has been driven by imports of oil and petroleum products. According to Stats NZ, overall imports of goods and services increased by 23% to NZ$29.7 billion in the September 2021 quarter, while total exports of goods and services increased by 25% to NZ$22.2 billion. Let’s discuss the notification in detail.
Rising Import Costs in New Zealand Cause rise in Trade Deficit
According to the new data released recently by New Zealand’s statistics office, the country’s gross trade imbalance increased to NZ$7.5 billion ($4 billion) in the third quarter of 2022 as a result of increasing import expenses.
Imports of oil and petroleum products have been the main factor in the increase in goods imports over the past 12 months. Stats NZ reports that total imports of goods and services rose by 23% to NZ$29.7 billion in the third quarter of 2021, while total exports rose by 25% to NZ$22.2 billion.
Also, Vehicles, parts, and accessories, as well as mechanical and electrical gear and equipment, were other commodities that increased the value of imported goods in the third quarter of 2022.
According to Alasdair Allen, international trade manager, “Inflation is a worldwide reality, meaning New Zealand importers are paying more for products, many of which are essentials like fuel.” Import prices and their New Zealand dollar values rise when the value of the New Zealand dollar falls.
Increased international travel is good for both exports and imports. In the September 2022 quarter, there was a growth in the number of international travellers. According to him, this has increased both travel service imports and exports. Get India Export Import Data Base.
According to him, although the number of international travellers climbed for both arrivals and departures, neither has yet reached pre-Covid levels. He also said that Australia topped both travel exports and imports in the third quarter of 2022 (ending in September).
Increased international travel doesn’t simply contribute to growth in travel services, but also other areas like aeroplane maintenance services, transportation services in the form of airfares, and demand for fuel, Allen added.
Meat export values decreased by $509 million to $1.8 billion and dairy export values decreased by $1.4 billion to $2.9 billion in the third quarter of 2021. The rising prices for wine (up $235 million) and fish, crustaceans, and mollusks (up $85 million) partially countered these declines.
Export prices increased by 4.6 percent within the same time frame, driven mostly by rising costs for dairy goods (up 7.1 percent) and meat products (up 10.8 percent).
According to Alasdair Allen, international trade manager, “dairy and meat export values tend to decline in the September quarter when the dairy, beef, and lamb seasons expire and export volumes decline. This year, meat volumes are larger than may be anticipated at this time of year, while dairy volumes are lower than might be expected.
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