"2023 showed a reversal of trends," expert says
In the year ending December, New Zealand’s annual goods exports amounted to $68.7 billion, marking a decline of $3.3 billion (4.5%) compared to the same period in 2022, according to the latest data released by Stats NZ.
Imports for the same duration were valued at $82.3 billion, reflecting a decrease of $4.3 billion (5.0%).
This resulted in an annual trade deficit of $13.6bn for the year ending December, a decrease from the $14.6bn deficit recorded in December 2022, which was the largest annual December deficit since the series began.
The adverse effects of tropical cyclones Hale and Gabrielle in January and February 2023 caused significant damage and disruption, particularly across the North Island.
Despite this, export values showed a consistent monthly increase in the first five months of 2023, reaching a peak of $7.0bn in May. However, for the remaining seven months of 2023, exports decreased compared to the same period the previous year.
“The fall in exports for the second half of 2023, when compared with 2022, were led by unit price falls for most of our main export commodities,” said Alasdair Allen, International trade manager at Stats NZ. “Milk powder and sheep meat were two of the most affected commodities.”
Exports to China also declined over the second half of 2023, with monthly exports decreasing from June onward. Over the period of July to December, exports to China fell by $1.9bin compared to the same period in 2022, led by declines in milk powder, butter, cheese, and meat.
Total monthly imports increased in the initial five months of 2023 compared to the previous year, but from June to December 2023, imports decreased compared to the same period in 2022.
China played a significant role in the fall in total imports in 2023, with imports from China decreasing by $2.1b in the second half of the year, led by vehicles, parts, and accessories, mechanical machinery and equipment, and iron and steel, and articles. petroleum products partly offset the falls in China imports, Stats NZ figures showed.
“2023 showed a reversal of trends, with the latter part of the year seeing a general softening in both export and import values,” Allen said.
Read the Stats NZ media release here.
For other recent Stats NZ stories, click here and here.
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