Surge in imports results in record monthly trade deficit

Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today.

Exports were little changed, down $42 million.

"This is a larger deficit than normal because of higher values for imports, particularly vehicles, continuing the trend observed over the last few months. August is also the month when we typically see lower values for dairy exports," international trade manager Alasdair Allen said.

The average monthly deficit for August months from 2002 to 2019 was $946 million.

Imports up $1.8 billion

In August 2021 imports rose $1.8 billion, led by a rise in imports of vehicles, parts, and accessories, up $415 million. Other commodities to rise included mechanical machinery and equipment (up $223 million), and petroleum and petrol products (up $207 million).

The country contributing the most to the increase in vehicles, parts, and accessories was Japan, up $165 million. This was followed by the European Union, up $64 million.

Exports little changed in August

Exports were little changed (down $42 million) in August 2021. A large fall in aircraft and parts (down $208 million) was partly offset by rises in other commodities including meat (up $109 million), logs, wood, and wood articles (up $71 million), and mechanical machinery and equipment (up $35 million).

"The decrease in the value of aircraft and parts exports was due to the export of planes to the United States in August 2020 for long-term storage as a result of New Zealand's border closure," Mr Allen said.

Annual goods trade deficit

The annual goods trade balance was a deficit of $2.9 billion.