New Zealand Dollar Down Late After Trade Deficit Widest Since 2008

New Zealand Dollar Down Late After Trade Deficit Widest Since 2008

There is some trade deficit in New Zealand Dollar, and currently Dollar is falling and this ratio was previously down in 2008.


WELLINGTON--New Zealand's goods trade deficit was the largest July deficit since 2008, while the annual deficit doubled from the previous month as imports bounced back from June's weaker than expected levels.
The country recorded a 774 million New Zealand dollar (US$604 million) trade deficit for July and a NZ$1.69 billion deficit for the year ended July 31, Statistics New Zealand said Monday. June's monthly figure was revised down to a NZ$374 million surplus, while the figure for the 12 months to the end of June was revised slightly lower to a NZ$768 million deficit.
The median expectation in a Wall Street Journal survey of nine economists was for a deficit of NZ$82 million in July, and a deficit of NZ$956 million for the year.
The New Zealand dollar dipped slightly on the figures, trading at $0.7803 at 2300 GMT from $0.7814 ahead of the data.
New Zealand normally records a surplus in July due to the seasonal nature of its agricultural exports. However, imports proved extremely strong this time, rising 17% from July 2012 to NZ$4.62 billon. This was partly due to a large increase in aircraft and parts imports, which reached NZ$276 million, up from NZ$21 million in July 2012. Petroleum products imports rose 43.9% on the year to NZ$760 million.
A fall in dairy exports, possibly due to lower production because of a drought declared across the entire North Island and parts of the South Island in March, didn't help the trade balance. Exports of milk powder, butter and cheese were down 12.9% on the year at NZ$926 million. Total exports for the month were down 4.8% on the year at NZ$3.85 billion.