New Zealand's monthly trade deficit widened more than expected in September as falling prices for logs and dairy products weighed on exports while imports were boosted by an incoming aircraft.
The country's trade deficit widened to $1.4 billion in September, from a revised August deficit of $489 million and a shortfall of $221 million in the same month a year earlier, according to Statistics New Zealand. That was nearly double the $700 million deficit forecast in a Reuters poll of economists. Excluding large one-off items September's trade balance deficit of $919 million, the largest for any September month since 2008, Statistics NZ said.
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Exports fell 5.3 per cent to $3.61 billion from the same month a year earlier, just above the Reuters forecast of $3.5 billion. Imports rose 23 per cent to $4.97 billion, beating the $4.2 billion expected in the Reuters poll. Excluding large aircraft, imports rose 13 per cent to $4.5 billion.
New Zealand has benefited from strong terms of trade this year as demand for dairy products and logs in China bolstered exports, while a historically high kiwi dollar keeps down the cost of imported goods. Dairy and log prices have since fallen from their highs, easing the country's trade outlook.