New Zealand’s July Trade Deficit Widens Sharply to NZ$1.9 Billion, Driven by Record Imports

• New Zealand’s July trade deficit hit NZ$1.9 billion, significantly missing forecasts.
• Imports reached a record NZ$9.3 billion, largely due to soaring oil prices.
• This marks the widest trade deficit in almost two years for the nation.

New Zealand’s merchandise trade deficit expanded considerably in July, reaching NZ$1.9 billion. This figure significantly exceeded market forecasts for a NZ$175 million shortfall and marked a sharp increase from June’s NZ$23 million deficit. The deficit was the largest in almost two years, primarily driven by a surge in imports, which climbed 28% annually to a record NZ$9.3 billion, up from NZ$8.07 billion the prior month. This import growth was largely attributed to soaring oil prices. Exports also increased 14% year-on-year to NZ$7.4 billion, though this was a decrease from NZ$8.09 billion in June. The annual trade deficit also widened to NZ$5.24 billion from NZ$3.75 billion previously.