NZ posts bigger than expected trade gap on fuel imports

Tuesday 26th August 2008

New Zealand posted a bigger-than-expected trade deficit last month as imports of fuel outpaced exports of dairy products and crude oil from the Tui field.

The trade gap was NZ$781 million in July from NZ$207 million in June, Statistics New Zealand said in a report. Economists had expected a deficit of NZ$526 million.

The merchandise trade position has been distorted by soaring crude oil shipments, largely from the Tui field part-owned by New Zealand Oil & Gas, while meat exports rose as farmers sent more livestock to be processed amid a summer drought. A slowing domestic economy will probably slow import demand though that will be offset by high fuel prices.

"Over the coming 12 months both dairy and meat exports are likely to remain subdued, but prices are generally strong," said Shamubeel Eaqub, economist at Goldman Sachs JBWere. "The full benefit of an export-led recovery will be visible from late 2009 and in full evidence in 2010," he said.

By Jonathan Underhill

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Greenfern Industries Limited (NZX: GFI) Releases Interim Results
Hallenstein Glasson Holdings Limited (NZX: HLG) Announcement of Final Dividend
26th November 2021 Morning Report
EROAD Limited (NZX: ERD) Accelerates Towards Next Phase of Growth
Green Cross Health Limited (NZX: GXH) REPORTS STRONG HALF YEAR PROFIT OF $9.7M
Stride Property Ltd & Stride Investment Management Ltd (NZ: SPG) Placement Size Increased Following Strong Demand
General Capital Limited (NZX: GEN) Announces Very Strong Growth
25th November 2021 Morning Report
Gentrack Group Limited (NZ: GTK) Annual Results for the Year Ended 30 September 2021
Pacific Edge Limited (NZX: PEB) Results for Six Months Ended 30 September 2021