Demand from China, Japan softens New Zealand trade deficit

Rising exports to China and Japan helped offset New Zealand's trade deficit in October, the government statistics agency said Friday.

New Zealand's total goods exports rose 2.2 percent year on year last month to 3.9 billion NZ dollars (2.73 billion U.S. dollars), with dairy exports up 13 percent to 1.1 billion NZ dollars (770.99 million U.S. dollars).

"We exported more butter for a higher price this month than October last year," international statistics manager Jason Attewell said in a statement.

"We also exported more milk powder, but prices were similar."

However, meat and edible offal exports, the second-largest export commodity group, fell 18 percent, or 71 million NZ dollars (49.76 million U.S. dollars).

Exports to China were up 54 million NZ dollars (37.85 million U.S. dollars), or 7.9 percent, led by rises in logs, wood and wood articles, and in dairy products.

Exports to Japan were up 28 million NZ dollars (19.62 million U.S. dollars), or 12 percent, led by rises in a range of commodities.

Exports to New Zealand's three other main destinations -- Australia, the United States and the European Union -- were all down.

The monthly trade balance was a deficit of 846 million NZ dollars (592.96 million U.S. dollars), or 22 percent of exports.

In the previous five October months, the average trade deficit was 15 percent of exports.

For the year ended October, the annual trade deficit was 3.3 billion NZ dollars (2.31 billion U.S. dollars). Endit