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New Zealand's trade gap narrowed last month although the country still imported $1.21 worth of goods for every $1 of exports.
Deficits are normal in August, however, and over the past five years have averaged 34 per cent of exports, Statistics New Zealand said.
The monthly deficit at $750 million was down from $808 million in July and less than the $900 million economists had expected.
But it left the annual trade deficit at $4.3 billion even though the country is in a recession which limits demand for imports, the terms of trade are the most favourable since the 1970s, the exchange rate has fallen 13 per cent from its peak just over a year ago and front-loaded production from the Tui oil field has provided a partial hedge against oil prices.
Exports last month at $3.6 billion were 34 per cent higher than in August last year. Most (62 per per cent) of the increase came from dairy and meat prices and a jump in oil shipments.
Exports other than dairy, meat and oil have also firmed up and were 20 per cent higher than a year ago, ASB chief economist Nick Tuffley said.
Imports at $4.3 billion were up 20 per cent on a year earlier. While imports of plant and machinery were up 6 per cent, consumer goods were flat and cars 9 per cent lower.
