Exports To China Help Boost Trade Surplus
July 24th, 2009
Imports are collapsing but exports are rising, especially to China after the FTA which came into force late last year. This helped push May trade figures to a “very healthy” $858m surplus, the highest level in 16 years. The surplus for the month was equal to 21.7% of exports the highest percentage since 1993. Exports hit $4bn in May, up almost 6% on the same month last year.
The trade figures showed NZ’s relative resilience in the global downturn, helped by rising volumes of commodities and some export prices holding up. Exports to China accounted for 80% of the rise in exports during May, mainly from milk powder, butter and cheese, and logs and wood. NZ milk powder sales have risen sharply after the melamine contamination scandal in China last year.
The free trade agreement with China came into force last October. Wellington Chamber of Commerce chief executive Charles Finny says the agreement was “almost certainly” a factor in the 92% jump in exports to China in the three months to the end of May, compared with the same period last year.
Copyright © The Main Report Group
