N.Z.’s TRADE BALANCE

Press, Volume XCVII, Issue 28492, 23 January 1958, Page 9

N.Z.’s TRADE BALANCE

Departmental Survey

/ New Zealand requires a visible surplus of exports over imports of about £43,000,000 to £47,000,000 to meet the annual cost of “invisible” items, chiefly services from overseas. Since the balance-of-payments survey was instituted by the Department of Statistics in 1950-51, merchandise surpluses of this magnitude have been achieved only in 1950-51, 1952-53, and 1953-54, according to the department’s annual review of the balance of payments.

Analysing the trade surplus into monetary areas, it was found that, for 1956-57, although that for the United Kingdom had risen slightly, It was more than offset by an increase in the already consistent trade deficit with the rest of the sterling area, notably Australia. New Zealand was able to reduce imports from the United States and Canada sufficiently to reduce the deficit with that area by a significant £6,000,001, but, on the other hand, the trade surplus enjoyed in 1955-56 with other countries all but disappeared. In New Zealand’s main buying and selling market in the United Kingdom there was a small surplus, of some £2,500,000, which was about the same as the year before. The United Kingdom absorbed some 61.5 per cent, of New Zealand’s exports and provided 54.8 per cent of its imports; but the surplus of £31,600,000 on those transactions was all but absorbed by other services received from that country. Consistent Deficit The consistent deficit with the other sterling areas increased in 1956-57 to a record £46,700.000 and thereby eliminated any improvement in the sterling position which came from the United Kingdom. Since 1950, the balances have been:—

1950- Surplus, £30,450,000 1951- Deficit, £29,150,000 1952- Deficit, £4,750,000 1953- Surplus, £28,050,000 1954- Deficit, £38,950,000 1955- Deficit, £31,050,000 1956- Deficit. £22,450,000 Credits rose between those years from £225,400.000 to £304,250,000. Imports have been: 1950-51. £146.050,000: 1951-52. £237,450 000: 1952-53, £208.700 000: 1953-54, £181.500,000: 1954-55. £228.800.000: 1955-56. £249,450,000; 1956-57. £244,500.000.

The Upited Kingdom’s share of New Zealand’s imports was 54.8 per cent, in 1955-56. Seven years ago it was 60 per cent. The imports from other sterling countries at 23.3 per cent waa the highest since 1950.