TRADE BALANCE

Manawatu Standard, Volume LII, Issue 304, 22 November 1932, Page 2

TRADE BALANCE

DOMINION’S FIGURES IMPROVE. £12,000,000 IN TEN MONTHS. WELLINGTON, Nov. 22. A further substantial improvement in the visible favourable balance of the Dominion’s oversea trade is the outstanding feature of the October returns released yesterday by the Customs Department. For the ten months of this year to October 31 ex&ort values increased by over £2,000,30 and imports decreased by a similar amount, an improvement of over £4,000,000 in twelve months. The apparent favourable balance for the ten months was over £12,000,000, compared with slightly over £8,000,000 for the corresponding period of 1931. Exports last month were valued at £2,401,000, an increase of £665,728 compared with October, 1931. Imports for the month were lower by £14,699, as is shown in the following comparative table: Oct., 1931. Oct., 1932. Increase £ £ £ Exports .... 1,735,450 2,401,178 665,728 Imports .... 1,862,231 1,847,532 *14,699 Excess of imports ... 126,781 Excess of exports ... "Decrease. It is probable, of course, that last month’s increase in exports is represented by one ship’s cargo. A truer comparison is afforded by the ten months’ figures. Export values for the ten months ended October 31 totalled over £31,000,000, compared with £29,000,000 for the corresponding period of last year, an increase of over £2,000,000. This represents a remarkable achievement in production. Considering that meat prices were showing a continuous decline and that the prices of wool, butter and cheese and other primary products have been ruling at lower levels this year than last, the gain in export values of over £2,000,000 represents a very considerable increase in the volume of exports. The figures for the ten months’ periods compare as follow : 10 mths. 10 mtlis. Increase 1931. 1932. or deer. £ £ £ Exports ... 29,004,574 31,087,830 2,033,256 Imports ... 20,960,260 18,913,231 *2,047,029 Excess of exports 8,044,314 12,174,599 4,130,285 ‘Decrease. In view of the present exchange controversy, the position as disclosed by the above figures is of outstanding importance. The apparent favourable balance of trade for ten months is shown to be well over £12,000,000, compared with a shade over £8,000,--.i twelve months ago. The values shown for exports are the declared f.o.b. values in terms of New Zealand currency, while imports are valued on basis of values in the exporting countries plus 10 per cent. If tho ten months’ export values are converted into their approximate sterling equivalent, by the deduction of 10 per cent., they represent roughly £27,979,000, so that the visiblo favourable balance in sterling is over £9,000,000. TEN YEARS’ COMPARISON.

In the following table are given the export and import values for the ten months’ period for the last ten years: Excess of Ten Exports. Imports. exports, months. £ £ £

‘Excess of imports.

It will be seen that exports for the ten months of this year, despite a depression that has brought prices of the Dominion’s primary products well below the pre-war level of values, are only £8,500,000 less than those for two years ago, and are £2,000,000 higher tha.n those of a year ago. On the other hand, imports at under £19,000,000 are little more than one-half of those for the ten months of 1930, and this with a 10 per cent, exchange rate. The figures also show that the favourable balance of over £12,000,000 for the ten months of this year is the highest recorded for a decade, and compares more than favourably with that of £11,750,000 in 1928, when the exchange position was normal.

1923 ... ... 39,720,169 36,083,360 3,636,809 1924 ... .... 43,984,306 40,220,427 3,763,879 1925 ... ... 46,149,945 42,980,176 3,169,769 1926 ... ... 39,020,207 41,741,128 *2,720,921 1927 ... ... 40,259,995 37,272,274 2,987,721 1928 ... 36,715,283 11,730,347 1929 ... ... 48,134,089 40,764,226 7,369,863 1930 ... ... 39,576,645 37,040,126 2,536,519 1931 ... ... 29,004,574 20,960,260 8,044,314 1932 ... ... 31,087,830 18,913,231 12,174,599