NZ November Trade Deficit in 5 Year Low
The New Zealand trade deficit for the month of November reached 14.1% of exports, according to figures released by Statistics New Zealand on the 7th of January.
The trade deficit is defined as the excess imports of a country over their respective exports. In the November of 2009, the deficit figure for New Zealand reached $520 million, or 14.1 % of the exports. The average November trade deficit figure for the previous five years has been 27.7% of the export figure.
Despite this, some analysts are still predicting a relatively gloomy situation for New Zealand in the near future. Dominantly this view is supported by the contraction of global markets and falls in commodity prices. ASB economist Jane Turner pegged the good news of this November to an increase in dairy exports and the end to last year’s drought, which had a negative effect on exports.