New Zealand Trade Surplus Turns to Deficit on Rising Imports

New Zealand’s May Trade Surplus of NZ$858.0 million unexpectedly turned into a deficit of NZ$417.0 million in June after imports rose by the largest amount since December. Exports also declined to the lowest level since January after the currency surged ahead nearly 10% in May. On a year-to-date basis, this is the first month in which the deficit widened. The New Zealand Dollar’s strength grew the ability of the country’s residents to buy goods abroad, while making it more expensive for foreigners to purchase products made within the island country. Airliners took advantage of the strong Kiwi, increasing their purchases of aircrafts produced abroad by NZ$571.0 million.