Despite a narrower trade surplus in May, the latest trade figures released by Statistics New Zealand on Monday indicate that New Zealand’s economic recovery continues to be led by growing exports.
The value of May exports had been forecasted at $4.8 billion New Zealand dollars, higher than the actual exports total of (NZ) $4.6 billion. Meanwhile, imports surpassed the forecast of (NZ) $3.7 billion with a total of (NZ) $4 billion in May.
While New Zealand’s (NZ) $605 million May trade surplus was significantly lower than April’s revised (NZ) $1.15 billion surplus, economists still see exports growing strongly.
According to ASB economist Jane Turner, “the trend for solid trade surpluses remains intact" when high oil prices, the one-time import of aircraft parts, and the drop in dairy exports are stripped out of the equation,
"Both commodity and manufactured exports continue to perform very well, and highlight the export-led nature of the New Zealand economic recovery", she said.
In May, exports were led by pleasure boats followed closely by agricultural commodities, including milk powder, butter, and cheese, and meat and edible offal.
When the May-to-May year is considered as a whole, it is clear that exports have been performing strongly. The value of the trade surplus in the previous 12 months ending in May was (NZ) $1.07 billion, significantly higher than a trade surplus of (NZ) $41 million the year before.
