New Zealand’s trade balance deteriorated in Jan on spike in oil imports

New Zealand’s trade balance deteriorated in January, Statistics New Zealand data showed on Tuesday. New Zealand posted a merchandise trade deficit of NZ$285 million in January, widely missing forecasts for a shortfall of NZ$25 million following the NZ$36 million deficit in December.

Details of the report showed exports were up NZ$13 million or 0.3 percent on year to NZ$3.91 billion - beating forecasts for NZ$3.90 billion but down from NZ$4.38 billion in the previous month. While imports jumped an annual 8.0 percent or NZ$311 million to NZ$4.19 billion versus expectations for NZ$3.90 billion and down from NZ$4.42 billion a month earlier.

A significant contributor to the surprisingly large deficit was a spike higher in the volume of oil imports. Excluding crude oil exports and imports, the trade balance was a deficit of NZ$36 million (0.9 percent of exports).