New Zealand's trade deficit keeps shrinking

New Zealand's trade deficit continued to shrink last month as the value of imports and exports declined at their fastest pace in 21 years, Statistics New Zealand said on Friday.

Statistics New Zealand overseas merchandise trade figures showed the balance of trade deficit for October at 487 million NZ dollars (348.6 million U.S. dollars) from a revised 563 million NZ dollars (403 million U.S. dollars) deficit in September and a 994 million (711.5 million U.S. dollars) deficit a year earlier.

Statistics New Zealand said the deficit stood at 1.2 billion NZ dollars (859 million U.S. dollars) in the year to October.

Imports fell by 28 percent to 3.5 billion NZ dollars, due to a drop in purchases of fuel and mechanical machinery and equipment.

Exports fell by 22 percent to 3 billion NZ dollars, with milk powder, butter, and cheese the largest contributors to the fall.

Meanwhile, the export outlook remains subdued with the high NZ dollar hampering exporter's ability to remain competitive.

The New Zealand dollar has surged almost 50 percent from its sub-50 U.S. cents low in March, and recently traded at 71.16 U.S. cents from 71.58 U.S. cents immediately before the release.

Source: Xinhua