Prices for both exports and imports rose but export prices lifted 7.8 per cent versus a 7.2 per cent increase for import prices. Photo / Alan Gibson
Prices for both exports and imports rose but export prices lifted 7.8 per cent versus a 7.2 per cent increase for import prices. Photo / Alan Gibson
High commodity prices that have driven up global inflation are also flattering New Zealand's terms of trade.
New Zealand's terms of trade, for goods, lifted 0.5 per cent in the first quarter to be just short of a new record high.
Prices for both exports and imports rose but exportprices lifted 7.8 per cent versus a 7.2 per cent increase for import prices.
High global food inflation was reflected in high export prices, while high energy costs continued to underpin import prices, said ANZ economist Susan Kilsby.
Total exports of goods and services for the March 2022 quarter were $19.8 billion, up from $17.3b in the March 2021 quarter.
Meat prices gained 4.4 per cent (q/q) on a seasonally adjusted basis, while meat volumes dropped 10.5 per cent.
"Meat export volumes suffered from a slow start to the lamb-processing season, and labour issues reduced capacity at meat-processing plants," Kilsby said.
Forestry product exports lifted 0.4 per cent as demand for logs and prices improved after Chinese New Year.
Prices for forestry exports were up 3.3 per cent in the quarter.
Overall export volumes fell sharply, dropping 7 per cent q/q, while the decrease in import volumes was more modest, at 2.6 per cent, Kilsby said.
Kiwis imported less fuel, plastics, and transport equipment during the quarter.
The data showed the international travel industry slowly coming back to life as border restrictions eased.
Trade in services - dominated by tourism prior to the pandemic - rose across the board in the March quarter, although growth in imports outpaced exports.
Total services imports rose 35 per cent ($1.4b) in the March 2022 quarter, compared with March 2021, while total services exports rose 12 per cent ($376 million), Stats NZ said.
March quarters are typically the peak time for tourists coming to New Zealand, and the September quarters are the peak time for New Zealanders to go on holiday overseas. Photo / Alex Burton
The services terms of trade fell 1.9 per cent (q/q) as prices for imported services increased by 4.5 per cent, while export services increased by just 2.6per cent.
When compared with the March 2020 quarter (before the main impacts of Covid-19), total services imports were down 0.1 per cent, while services exports were down 59 per cent, StatsNZ said.
"Services imports have been quicker than services exports to return to pre-pandemic levels, largely due to increases in the volume and cost of transportation, which is a large import category for New Zealand," said international trade manager Alasdair Allen.
"With the border restrictions eased, most New Zealand travellers' overseas spending was in the Cook Islands and Australia," Allen said.
"Historically, as border restrictions have eased, we have seen traveller movements increase."
March quarters are typically the peak time for tourists coming to New Zealand, and the September quarters are the peak time for New Zealanders to go on holiday overseas.
