NZ posts worst monthly trade deficit ever

12.15pm

New Zealand posted its worst ever monthly trade deficit last month since statistics began in 1960, Statistics New Zealand said today.

Preliminary figures put the September shortfall at $721 million.

The previous worst figure was in September 2000 when a $603 million deficit was posted.

Today's figure was almost twice as bad as economists had forecast and further gloomy numbers can be expected as the effects of the soaring New Zealand dollar hits exporters and helps importers.

The monthly deficit equates to almost one third of the country's exports.

The annual trade deficit swelled to $3.18 billion, the worst deficit for a 12-month period to September.

Exports in September were down at $2.23 billion compared with $2.31 billion in August and $2.43 billion in September 2003. The fall from September last year was 8.1 per cent.

Imports were up to $2.95 billion against $2.60 billion in August and $2.79 billion in September 2002. From September last year, imports were up 5.9 per cent.

For the September year, the import bill was $31.94 billion, which was down 0.7 per cent on the $32.16 billion in the September 2002 year while exports fell 9.2 per cent to $28.64 billion from $31.68 billion.

Over the September quarter imports showed virtually no change from the June quarter on a seasonally adjusted basis..

SNZ noted that over the last 10 quarters the import trend had flattened as the New Zealand dollar has appreciated.

Sixteen armoured vehicle imported in August and September contributed to the deterioration in the trade balance. The army is importing $1.2 billion of armoured personnel carriers over two years.

The New Zealand dollar was today over 61 US cents -- the highest it has been for more than six years.

- NZPA