Travel Exports Boost Trade Surplus in Mar 2023 Quarter

New Zealand's trade deficit narrowed to $3.2 billion dollars in the March 2023 quarter, compared with $3.9 billion in the March 2022 quarter, according to data released by Stats NZ today.

The main contributor to the narrowing of the deficit was an increase in travel exports, which increased 385 percent compared to the March quarter last year, to $3.8 billion. Travel exports represent the amount spent by visitors in New Zealand during the period.

"Travel credits continue to climb as international travel patterns return to normal" international trade manager Alasdair Allen said. "However, they are still not quite back to pre-COVID levels".

Australia maintains high share of travel exports

Travel exports to Australia totalled $836 million in the March 2023 quarter, representing 22 percent of total travel exports for the period. China and the USA accounted for 13 percent and 12 percent respectively.

"Total spend from Australian travellers has almost returned to what we observed before COVID" Allen said. "Other countries are yet to reach previous levels."

International travel: March 2023 has more information on the origin of visitors to New Zealand.

Total services imports still high despite transportation dip

Total services imports remain high, and have increased 32 percent since the March 2022 quarter, but declined slightly since their peak in the December 2022 quarter, driven by a decrease in transportation services imports.

Sea transportation imports declined from their September peak by 26 percent, to $1.1 billion. "After an extended period of inflated sea transportation costs, we may be past the crest" Allen said.

Primary export prices drop

Merchandise terms of trade for the March 2023 quarter fell 1.3 percent on the previous quarter.

Export prices for goods fell 6.9 percent, while import prices for goods fell 5.4 percent, the highest fall for import prices since December 2009.

Dairy and meat products were the major contributors to falling goods export prices. Export prices for dairy products decreased 9.7 percent on the previous quarter, while prices for meat products decreased 12.2 percent.

"Price drops for whole milk powder and butter contributed to the fall in dairy product export prices, while sheep and lamb, and beef, were driving the meat export price falls", Allen said.