REPEAT: MNI New Zealand Trade Deficit Narrows In July

Repeats Story Initially Transmitted at 23:11 GMT Aug 23/19:11 EST Aug 23

By Sophia Rodrigues

     SYDNEY (MNI) - New Zealand recorded a lower-than-expected trade deficit in

July as exports rose at a faster rate than imports but the annual deficit for

the year to July was the widest since March 2009.

     Data published by Statistics New Zealand Thursday showed the overseas trade

posted a deficit for the second straight month, at NZ$143 million compared with

a revised deficit of NZ$288 million in June (from -NZ$113 million). The deficit

was lower than MNI median forecast of NZ$400 million.

     The annual deficit was NZ$4.4 billion, the widest since March 2009,

Statistics New Zealand said.

     Exports rose 9.7% m/m compared with a 8.8% fall in June, but on a y/y basis

exports rose 16% to NZ$5.3 billion  -- a record high for a July month. Imports

rose 6.3% m/m versus 0.4% in June, and on a y/y basis it rose 21% to NZ5.5

billion -- the second highest on record.

     Exports were led higher by milk powder, butter and cheese which rose 31%

y/y to NZ$1.5 billion. Imports rose 84% y/y to NZ$739 million due mainly to rise

in crude oil prices.

     China remained New Zealand's top destination for exports, up 28% to NZ$1.3

billion mainly owing to rise in dairy and meat exports.

     In the seven months of this year, New Zealand has recorded a total trade

deficit of NZ$654 million compared with a surplus of NZ$937 million in the same

period last year.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com