Trade figures show 1989 ‘best year’

Press, 27 July 1989, Page 21

Trade figures show 1989 ‘best year’

By

PATTRICK SMELLIE

in Wellington

New Zealand had its best export trade year in the 12 months to the end of June, 1989, according to the Statistics Department.

High international commodity prices pushed total export receipts for the year to $14.9 billion for 1988/89, up 19.7 per cent on the 1987/88 trade year. Better prices for many of New Zealand’s raw products is also leading to a pick-up in imports, however, which threatens to make last year’s string of merchandise trade surpluses hard to repeat. The trade surplus for the year at $2.48 was up a whopping 185 per cent on 1987/88 ($845 million). Last year’s recession pushed imports down strongly, allowing 11 months out of 12 to show a surplus of exports over imports. This compares with the previous year’s more normal pattern of six out of 12 months recording trade deficits, where imports outstripped exports. Destocking on drought-

affected farms is also given as one reason for the strong growth in meat receipts. Observers are picking difficulties with supplies in coming years because of the rundown of stockin line with this and high world beef prices, meat exports raked in $807.7 million in the three months to the end of June, a 39.2 per cent increase on last yearns June quarter, and by far the largest export earner. Wool at $402.8M was the second most valuable export in the June quarter, but was down marginally on the same period last year ($418.1M). Dairy produce was the third main category at $398.7M, up 28.6 per cent over the same three months last year. The most spectacular gains over the June quarter were in fish receipts, up 74.3 per cent over the same period last year at $205.5M; aluminium, up 51.9 per cent at $235.8M; and wood products, up 42.4 per cent at $146.3M. In spite of the huge annual trade surplus, the

surplus for June was in line with the same month last year, at $292.2M. This reflects the steady rise in imports for the last six months.

While total export growth for the trade year at 18.9 per cent outstripped import growth at 7.6 per cent, the tables turned in the June quarter. Imports at $3.38 showed 33.5 per cent growth in the three months to June, while exports only managed 24.7 per cent. Import figures for the period show the continuing impact of Japanese second-hand car imports, and moderate growth in goods related to business investment.

Vehicle imports totalled $462.8M, compared with SIBOM for the same three months in 1988. Electrical machinery showed a 42.5 per cent rise to $369.5M, but boilers, machinery, and mechanical appliances rose only 12.4 per cent, to $463.9M. In spite of strong car imports, New Zealand had a $51.7M balance in its favour in trade with Japan.