The FINANCIAL — New Zealand’s trade deficit widened in July as imports continued to rise although dairy exports showed their first increase in nearly a year, according to Nasdaq.
The country recorded a 649 million New Zealand dollar (US$420 million) goods, or merchandise, trade deficit for July and a NZ$2.69 billion deficit for the year ended July, Statistics New Zealand said.
Economists had been expecting a July deficit of NZ$650 million and an annual deficit of NZ$2.66 billion.
Exports were NZ$4.2 billion in July, up 1.5% on the month and up 14% on the year. Dairy exports rose 0.1% in July compared with a year earlier. Statistics New Zealand said it was the first rise in dairy exports since August 2014.
“The small rise in dairy export values combined with the falling New Zealand dollar contributed to the rise in total export values this month,” said international statistics senior manager Jason Attewell. “A weaker dollar means that exporters receive more New Zealand dollars for transactions in foreign currencies, while imports cost more.”
Imports were NZ$4.8 billion, up 11.9% on the month and up 4.8% on the year.