Surging dairy exports underpinned New Zealand's trade surplus in December, as primarily Chinese demand for milk products lifted overall exports.
The trade balance was a surplus of $523 million in December, in line with expectations, from a surplus of $183 million in November, and $535 million a year earlier, according to Statistics New Zealand. The total value of exports rose 16 per cent to $4.76 billion in December from a year earlier, underpinned by a 48 per cent gain in foreign sales of milk powder, butter and cheese to $1.89 billion. Imports rose 19 per cent to $4.24 billion.
The annual trade balance was a deficit of $259 million in 2013, narrowing the $1.16 billion shortfall in 2012. Annual exports rose 4.4 per cent to $48.09 billion, and imports increased 2.9 per cent to $48.35 billion.
High commodity prices are one of the factors supporting New Zealand's strong economic momentum, with seemingly insatiable Chinese demand for dairy products.
China became the country's biggest trading partner in 2013, toppling Australia in November, taking annual exports of $9.96 billion compared to $6.86 billion in 2012, and delivering imports of $8.26 billion, up from $7.71 billion a year earlier. Monthly exports to China jumped 67 per cent to $1.36 billion in December.