NZ: Trade balance at -$NZ1.14b blew out in Sep - TDS

Analysts at TDS suggest that New Zealand’s trade balance at -$NZ1.14b blew out in Sep (mkt –NZ$900m; TD –NZ$1.3b) with imports much higher than market expected at NZ$4.92b, driven by a boost in capital equipment.

Key Quotes

“Taking the three months that we now have, the Q3 current account deficit could shrink marginally (-2.8% to -2.6% of GDP) and for GDP, net exports add +0.25pp.  These forecasts to be confirmed with the Q3 terms of trade report, released Dec 1.”