EXTERNAL TRADE OF N.Z.

Press, Volume XCIII, Issue 28002, 23 June 1956, Page 8

EXTERNAL TRADE OF N.Z.

£10,700,000 Deficit For Year SURPLUS RECORDED LAST MONTH (New Zealand Press Association) WELLINGTON, June 22. The Reserve Bank announced today that during May a surplus of £7.900,000 was recorded in New Zealand's overseas exchange transactions, compared with surpluses of £4,400.000 in April, and £5,700,000 in May, 1955. Total receipts at £33.600.000. were £6.300.000 greater than in April, but showed little change over the figures for May, 1955—£33.900,000. Contributing to the increase over April were receipts from butter, cheese, wool, and other exports, but meat receipts showed a small fall. “Other receipts” remained constant over the two months. The largest increase for the month was in butter receipts. This, says the bank, reflects an increase in price as well as an increase in sales in the United Kingdom. Total payments increased from £22,900.000 in April to £25,900.000 in May. The main factor causing the increase was the increased volume of private imports—£l9.3oo,ooo compared with £17,400.000 in April. They were, however, smaller than the May, 1955, figure of £23,000.000. Year’s Figures A deficit of £10.700,000 was recorded in New Zealand's overseas exchange transactions for the year ended May 3. 1956, compared with a deficit of £39.100.000 for the year ended May, 1955. The net improvement was therefore £28.400.000. Total receipts rose by £45,100.000 from £270.600.000 to £315.700.000. All export classes contributed to this increase, but the greatest assistance came from butter, cheese, and meat, for which receipts are now flowing regularly after the temporary interruption caused by changed marketing conditions.

The increase in export receipts was offset by a reduction in the invisible item, “other receipts,” which, the bank says, reflects the reduced capital receipts, both Government and private, for the year.

Government capital receipts in 1955 were £13,200.000. and in 1956 £4.500.000. Private capital receipts fell from £9.900.000 to £5.800.000 in the year ended May, 1956. Total payments also increased from £309.700.000 in 1955 to £326.400.000 in 1956. Payments for imports showed little change over the two years.