Nearly 20 per cent decline in both import and export revenue has further widened the trade deficit of New Zealand to $725m in August against the maiden forecasts of $273m.

Exports fell to $2.74b against forecasts of $3.1b; while imports were reported at more than expected level of $3.47 billion, according to the latest data released by Statistics New Zealand (SNZ).

SNZ said: “(Exports have returned) to a level similar to August 2007, before the large value rises observed in diary and crude oil exports in the latter half of 2007 and during
2008.”

Low demand across key exports destinations reduced exports by 23.2 per cent to $830 million, reporting the biggest ever fall in exports since 1986. Export of about 40 top commodities categories plunged due to low prices, with crude oil reported fall of 50.9 per cent during the period.

Exports of Meat, edible offal, frozen beef and sheep cuts declined significantly in August, thereby contributing notably to the widening trade deficit. However, fruit exports, led by Kiwi fruit, increased 7.8 per cent; as compared to a year ago period.

About 56.7 per cent fall in crude oil imports declined NZ’s imports by 21.6 per cent last month, against its level in the corresponding period last year. Transport equipment and a one-off import of large aircraft affected significantly, with total capital good imports declining 35.4 per cent during the period.