NZ trade surplus NZ$378 mln in Sept quarter; Third in a row as imports fall more than exports

This article by By Alex Tarrant has got a good ring about it, but we have shrunk a lot over the last two years. When growth picks up again will we keep this advantage?

New Zealand’s seasonally adjusted overseas trade balance was a surplus of NZ$378 million in the September 2010 quarter, the third consecutive quarterly trade surplus, Statistics New Zealand said.

“While both exports and imports values decreased, imports decreased slightly more (from the June quarter),” Stats NZ overseas trade manager Neil Kelly said.

ASB economist Jane Turner said the third consecutive surplus was testament to the economy's export-led recovery.

"NZ’s export sector remains a key driver of growth for the NZ economy," Turner said.

"However, demand in the domestic sector remains sluggish, with business and consumer confidence low and credit appetites weak. Given this weakness in the domestic economy, the RBNZ is likely to leave the OCR unchanged until March 2010," she said.

Unadjusted figures show New Zealand had an overseas trade deficit of NZ$532 million in the September 2010 month, slightly better than the NZ$561 million deficit in September 2009.

The September 2010 deficit was wider than market expectations of around NZ$450 million.

“September months are typically deficits,” Stats NZ said.

In the year to September 2010, New Zealand had a trade surplus of NZ$921 million, up from a surplus of NZ$892 million in August and a NZ$1.7 billion deficit in the year to September 2009.