AUCKLAND—A report just released from Statistics New Zealand shows the second largest monthly fall in merchandise imports, in percentage terms, since February 1993.
Imports for the month of July 2009 fell steeply—20.9 percent, down $886 million to $3.3 billion compared with July 2008..
In the quarter ending July 2009, imports of aluminium and alumunium articles fell 32 percent, organic chemicals 24 percent and logs, wood and wood articles 21.3 percent compared with the same period last year.
Decreases in import values in July 2009 were seen in most categories, but most significantly motor vehicles, parts and accessories showed a 46.2 percent drop and petroleum and petroleum products 35.1 percentage.
The strongest falls registered over the last quarter, were in imports from the South Eeast Asian region – Indonesia, Japan, Singapore, Malaysia, Taiwan, Thailand – as well as Australia, New Zealand’s largest trading partner.
Merchandise exports for July 2009 were down $252 million being valued at $3.2 billion, a 7.3 percent fall compared with July 2008. The biggest falls were crude oil exports, down 34.3 percent, aluminium and aluminium articles, and wood pulp and paper both down 26 percent.
Milk powder, butter and cheese, New Zealand’s largest category was almost the same as July 2008 despite quantities being over 56 percent higher, said Statistics New Zealand.
While exports were down overall, exports to India rose ( 54.8 percent) and to China ( 51.6 percent).
The trends for merchandise import and export values both peaked in the latter half of 2008 and have been declining since then, with imports showing the largest decline, said the report.
The trade balance was a deficit of $163 million, or 5.1 percent of exports. This says Statistics New Zealand, compares with an average July shortfall of 23.6 percent of exports for the previous five years.
It it not surprising that these trends show up on New Zealand’s trade account, says Peter Enderwick, Professor of Business Studies at Auckland University, as the current recession has seen trade collapse by 10 percent and this has been reflected by the collapse in imports.
China and India have cut back substantially on commodities such as wood pulp, waste paper and aluminium.
“Asia is the hardest hit but quickest to recover,” he said. “I think there are early signs of recovery but it is fragile,” he said.
The economies of China and India have been picking up in the last quarter.
Friends Read Free