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New Zealand's monthly trade deficit narrowed to $520 million in November, as exports rose faster than imports compared to a year earlier.
Releasing the data today, Statistics New Zealand (SNZ) said the monthly deficit equated to 14.1 per cent of exports, below the average November deficit of 27.7 per cent for the preceding five years.
The November figure is lower than the October deficit of $996m, and took the annual trade deficit to $5.2 billion, or 12.1 per cent of exports.
The figures were not as bad as expected, with the median forecast among economists in a Reuters poll having been a monthly deficit of $838m and an annual deficit of $5.5b.
Imports rose 5.2 per cent, or $209m, in November from a year earlier to $4.2b, while exports rose 9.4 per cent, or $316m to $3.7b.
SNZ said the biggest contributor to the rise in exports for the month was the milk powder, butter and cheese category, with a 10.3 per cent, or $94m, increase from November 2007.
The fastest rising individual items included natural milk constituents up $39m, cheddar cheese up $32m and unsalted butter up $32m.
The logs, wood and wood articles category also increased strongly, rising 40.2 per cent, or $67m, led by a $47m increase in untreated pinus radiata logs.
Meat and edible offal exports rose 18.3 per cent, or $53m, led by a $50m increase in frozen boneless beef cuts.
The largest export decrease was in crude oil, down 59.6 per cent, or $144m, with quantities down 57.7 per cent compared to November 2007.
The timing of crude oil shipments was irregular, and could cause large percentage fluctuations in the series, SNZ said.
In the year to the end of November exports to Australia, this country's largest export destination, exceeded $10b for the first time. That was a 28.7 per cent, or $2.2b, increase from the year ended November 2007, due largely to a $1.4b increase in crude oil.
The rise in imports in November was led by phosphates, up $114m from a year earlier, crude oil up $108m and fertilizers up $100m.
Capital goods imports decreased 9.6 per cent, or $81m, mainly due to a 49.8 per cent, or $114m, fall in transport equipment. Passenger vehicle imports were down 51.9 per cent, or $170m, in November to the smallest November value since 1997.
The trend for the value of imports appeared to have flattened in recent months, coinciding with the decline in crude oil prices, SNZ said.
- NZPA
