A near $1 billion drop in August imports, including vehicles and crude oil, led to a $1.3b annual goods trade surplus for the period – the largest since 2014, according to Stats NZ.
Crude oil fell $346m year-on-year in August while industrial transport equipment (such as trucks and vans) fell $154m y/y and passenger motor cars fell $133m y/y.
The total value of monthly goods imports for August fell $940m (16%) compared to the same period last year.
The falls were partly offset by a rise in diesel which was up $84m.
“The recent falls in imports and growth in exports resulted in an annual trade surplus not seen since the strong 2013/14 dairy export season, when product prices were high,” senior insights analyst Nicholas Cox says.
New Zealand’s demand for fuel dropped due to COVID-19 international and domestic travel restrictions.
During the lockdown in April, imports of vehicles were particularly affected by international trade restrictions and the closure of vehicle dealerships as non-essential businesses.
Higher exports of kiwifruit and aircraft helped boost the value of total goods exports by $349m (8.6%) from August 2019 to reach $4.4b in August 2020.
Several of New Zealand’s main export commodity groups were up in value in August 2020 compared with August 2019.
Fruit rose $104m (28%) to $470m, led by gold kiwifruit (up $80m or 48%). The rise was quantity-led, but the average unit value also rose, up 8.3%.
Exports of gold kiwifruit in the 2020 export season to date (March–August) were 29% higher in value and 18% higher in quantity than in the 2019 season. Exports of green kiwifruit were also up (by 7.1% in value and 3.2% in quantity).
“The increase in the value of kiwifruit exports in 2020 resulted from strong international demand, higher prices, and higher harvested volumes, particularly of gold kiwifruit,” Cox says.
“The volumes exported are higher than in previous years, despite concerns earlier in the year of a potential shortage of labour during the harvest season in April and May.”
Dairy products were up $55m (10%), and wine was up $30m (18%).
The largest rise in total goods exports in August 2020 was for aircraft and parts, up $205m.
“In August 2020, aircraft were sent to the United States for long-term storage as New Zealand’s border closure restricts international travel,” Cox says.
Other contributors to the rise in exports in August 2020 were exports of live animals (up $77m), mainly due to large shipments of cattle headed for China.
These rises were partly offset by falls in crude oil exports (down $39m), fish exports (down $36m), and mechanical machinery and equipment exports (down $22m).
