Exports up, imports down, during lockdown

Wednesday, 8 April 2020

NZ exports are helping keep the economy afloat.

New Zealand may be facing a lot of economic challenges as a result of the coronavirus pandemic, but it appears that they are unlikely to include running a trade deficit.

Preliminary figures released by Statistics NZ indicate that New Zealand exports jumped 13 per cent to $1.48 billion during the week to March 31, compared with the same week last year, while imports fell 4 per cent to $1.27b.

The period covers the first six days of the level 4 lockdown

The $210m trade surplus for the week gives credence to the assumption that the country's agricultural exports will enable it to continue paying its way in the post-coronavirus world.

* Coronavirus impact on exports deepens but trade still up on two years' ago

* NZ dollar plunges against US dollar and Euro**

Imports from China were down 27 per cent in the week, while exports to China were up 4 per cent, Statistics NZ said.

Overall, in the month of March the country ran a trade surplus of about $1.3b.

ANZ chief economist Sharon Zollner said the figures were encouraging.

'It means our exporters are doing a pretty good job of getting their stuff to market.

'Logically, not every country can have positive net exports, so that puts us in a lucky category.'

While the year ahead would be tough and exports would not get off 'scot free', they were likely to make a contribution to offset the hit to the broader economy, she said.

To the extent that the reduction in imports represented a collapse in consumption and investment that was not 'good news'.

'But it is a positive to New Zealand that the world needs to keep eating through thick and thin', whereas countries that made cars had previously seen that 'just stop' during the GFC, Zollner said.