NZ annual trade deficit unexpectedly shrinks in May

Friday 26th June 2015

New Zealand’s annual trade deficit unexpectedly shrank in May as exports rose more than forecast and imports lagged predictions.

The country’s trade deficit fell to $2.57 billion in the 12 months through May, according to Statistics New Zealand. That was lower than the $2.66 billion annual deficit in April and the $2.9 billion forecast by economists in a Reuters survey.

For the month of May, New Zealand had a surplus of $350 million, beating expectations for a $100 million deficit.

May exports declined 4.7 percent to $4.36 billion in May from the year earlier month, ahead of expectations for $4.27 billion. The export decline was led by a 28 percent drop in milk powder, butter and cheese.

Meanwhile, imports in May fell 7 percent to $4.01 billion in May from a year earlier, less than the $4.29 billion expected. Imports of intermediate goods declined, led by crude oil, and capital goods.

BusinessDesk.co.nz

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