Port workers are pictured busily loading this year's kiwifruit harvest onto a ship at the Port of Tauranga. Photo / File
Port workers are pictured busily loading this year's kiwifruit harvest onto a ship at the Port of Tauranga. Photo / File
The Covid-19 pandemic continues to push New Zealand's trade balance into positive territory.
In fact, the country recorded its largest trade surplus since 2014 - the height of the last dairy boom.
But today's figures - a $1.3 billion annual goods trade surplus for the August 2020 year - reflected a rise in exports and a fall in imports over the past months, StatsNZ said.
Imports were down by almost $1b for the month.
A similar trend was evident for the June quarter current account - which was recorded the largest surplus since 1971.
The figures were in line with expectations, said ASB economist Nathaniel Keall.
"Remarkably, annual merchandise export values aren't too far off the high reached in March and are currently sitting at $60.6b," he said.
"That's notable, given predictions the Covid-19 outbreak would lead to a broad slowdown in international trade, and highlights that NZ's key export sectors – like food production – are likely to remain more resilient than other industries."
Kiwifruit in particular had been a strong performer on the export front, with values up $349 million (8.6 per cent) versus August 2019. Dairy products were also up 10 per cent.
But export numbers were inflated a bit by the long-term departure of aircraft being put into storage in the US.
Aircraft and parts were the biggest mover in the goods export data, up $205m.
That was because aircraft were sent to the United States for long-term storage, given NZ's border closure is unlikely to be lifted any time soon, Keall said.
An Air NZ Boeing 777 on the ground in desert storage at the Southern California Logistics Airport. Photo / Supplied
"That's a significant contributor to the overall export figure."
The value of monthly goods imports in August 2020 fell $940m (16 per cent) from August 2019.
Crude oil fell $346m, industrial supplies (such as steel and plastics) fell $157m, industrial transport equipment (such as trucks and vans) fell $154m, passenger motor cars fell $133m, and consumer goods (such as clothing and footwear) fell $123m.
Data from earlier this month showed New Zealand's seasonally adjusted current account was a surplus of $0.5b in the June 2020 quarter - the biggest in the series since 1971, Stats NZ said today.
That compared with a $1.4b deficit in the March 2020 quarter.
On an annual basis, the deficit narrowed to the lowest it has been in a decade, at 1.09 per cent of GDP.
Finance Minister Grant Robertson acknowledged the export success, saying it underlined the strength of New Zealand primary producers.
"Our farmers and growers are supporting our economic recovery by earning top dollar based on a reputation of sustainable food production. The smart thing to do is to keep supporting this success," Robertson said.
