Export Successes Raise N.Z. Trade Balance

Press, Volume CIX, Issue 31977, 2 May 1969, Page 14

Export Successes Raise N.Z. Trade Balance

(New Zealand Press association)

WELLINGTON, May 1.

New Zealand’s overseas exchange transactions during the fiscal year to March 31 yielded a current account surplus of s44.9m—an improvement of $62.3m over the previous year. The result was a eombina-$164.2m. The over-all result tion of a trade surplus of was a deficit of s22m, after 8209.1 m and a deficit on in-allowing for the excess of visible transactions of payments over receipts of

$66.9m on capital account, says a statement issued today by the Reserve Bank. Export receipts totalled $953.8m, a rise of sl66m over the 1967-68 year, and included the March month’s figure of sloom for export receipts, the first time in any one month that this figure had been reached.

Summary Of Exchange Transactions

Export Receipts Import Payments .. Trade Balance: Invisibles (Net) Current A/c Balance: Capital A/c Balance: Overall Balance: ..

The higher level of receipts for the year was achieved through increases principally in meat receipts (+sslm) and wool (+562.3m), but with the exception of dairy products, all other export classes made valuable contributions to the higher earnings. The decline of $15.9m in the amount received from dairy products during the year reflected the weak markets for the major products resulting from surplus stocks in European dairying countries, said the bank.

Total import payments, $744.7m, were 17.9 per cent higher in the current year, with private imports increasing by 21.3 per cent and Government import payments decreasing by 15.9 per cent. Most of this increase, however, could be attributed to the effects of devaluation by raising prices in New Zealand currency terms. The earlier unsurge in monthly payments showed some signs of tapering off.

Invisible receipts and payments both rose. The increase in receipts was helped earlier by the effects of devaluation, and the resulting deficit was $9.2m less than that in the 1967-68 year. The excess of payments over receints on capital account of $66.9m was the outcome of the Government’s policies of repaying official short-term overseas debt combined with a reduction in overseas borrowing. Repayments during the vear included International Monetary Fund drawings (557.4m>, a London loan ($32.1m), and United States loans of $11.7m. The impact of devaluation on the private capital flow apnears to have diminished as the net inflow during the year was $3.9m compared with $23.4m a year earlier. The over-all outcome of the year’s operations was a deficit of s22m, compared with a surplus of $67.7m the year before. The principal movements in exports for the last two years (ending March) are shown in the following table:—

Year Ended March 1968 ($m) 787.8 631.8 1969 ($m) 953.8 744.7 Change ($m) +166.0 +112.9 .. +156.0 .. —173.4 +209.1 —164.2 +53.1 +9.2 .. —17.4 +44.9 +62.3 .. +85.1 —66.9 —152.0 .. +67.7 —22.0 —89.7

March Year 1968 1969 Butter 109.6 107.8 Cheese 49.4 42.1 Other dairy products 64.6 57.9 Meat 247.0 29R.0 Wool 151.1 213.4 Other animal products 63.2 77.5 Forest products 38.7 58.8 Other primary products 40.1 56.1 Miscellaneous 24.0 42.3 Total exports 787.8 953.8