November trade deficit confirmed at $679m

New Zealand's trade deficit for November remained at $679 million, according to updated figures released by Statistics New Zealand (SNZ) today.

The November year defict of $4.19 billion was the highest on record.

The worse than expected deficit was initially revealed on December 23, based on import data. Today's more complete data showed no change. Economists had initially forecast a $467m deficit for the month.

SNZ said exports were $2.62 billion in November against imports of $3.3 billion.

Exports in the November year were at $30.48 billion against imports of $34.66 billion, meaning the annual deficit has swollen to $4.19 billion (rounded figure) from $3.14 billion in the November 2003 year.

The deficit was despite a 17.2 per cent rise in the value of exports to New Zealand's current top four trading partners from November 2003.

The top four - Australia, United States, Japan and China - account for more than half of exports.

The main commodities contributing to the increased value of exports to these countries in November were whiteware, wine and steel to Australia; steel and aluminium to the United States; crude oil, fruit and mechanical wood pulp to Japan; and live cattle to China.

For the November year, exports to the top four trading partners were 8.1 per cent higher than for a year earlier.

November's total exports were 9.6 per cent up on November 2003 with rises posted across a broad range of commodities led by mechanical machinery and equipment; milk powder, butter and cheese; steel; and unwrought aluminium.

Imports for the month were up nearly 9 per cent on October and up 19 per cent on a year earlier. The monthly deficit represented 25.9 per cent of exports, a proportion exceeded for November only twice in the past decade, the department said.

Annual exports were up 7 per cent on the previous year, driven by increased returns for dairy products, beef and kiwifruit.

The annual deficit represented 13.7 per cent of exports.

- NZPA