Plunging vehicle imports drive record trade surplus
A massive drop in vehicle imports was a major factor in New Zealand recording its largest monthly trade surplus of $1.3 billion in April, according to Stats NZ.
Car imports fell by $119 million, or 33 per cent, when compared to April 2019, while the figures for trucks and vans was down $111m, or 52 per cent. The fall in motor cars was also reflected in the number of newly registered cars plunging from 17,661 to 1,329.
Darren Allan, international statistics manager, says that imports in April overall suffered their biggest fall since October 2009.
“This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest since March 2015,” he explains.
“A sharp fall in imports of petroleum, vehicles, and machinery, combined with steady exports, led to the record surplus.
“Imports of cars and trucks dropped as Covid-19 disrupted both the international supply chain and the local demand for new vehicles, with car dealerships closed during the lockdown.”
The value of goods imported in April 2020 fell $1.1b, or 22 per cent, to $4b when compared with the same month of last year. This is the second largest fall on record since the series began in 1960. At the same time, exports only tumbled by $220m, or four per cent, to $5.3b.
The drop coincides with the Covid-19 level four lockdown, which started at the end of March and ran until the end of April, when non-essential businesses temporarily closed.
The largest contributor to the fall in imports was petroleum and products, which fell $352m, or 58 per cent, from a year ago. A fall in petrol and diesel of $97m, or 35 per cent, coincided with fewer New Zealanders driving their cars during the lockdown period.
Imports of cell phones also fell sharply in April, down $36m, or 42 per cent, year-on-year.
New Zealand imported $65m worth of face masks in April this year, a new record for the products and was an increase of $58m from the same month in 2019.
Imports from China of laptop computers also rose $43m, or 62 per cent, coinciding with many people working from home because non-essential businesses were closed.
Meanwhile, the level of imports from the European Union fell by 40 per cent in April and was down from $1b to $606m.
