New Zealand's annual trade deficit of $2.6 billion is the largest since June 2009, in spite of April having been the fourth consecutive month in which there was a trade surplus.
The merchandise trade surplus - the difference between exports and imports - for April booked a $123 million surplus, with exports at $4.16 billion and imports at $4.04 billion, Statistics New Zealand data showed yesterday.
For the year ended April, the annual trade deficit of $2.6 billion was the largest since $3.1 billion was posted for the year ended June 2009.
Although producing the $123million surplus, total goods exported fell by $240 million, or 5.5%, to $4.2 billion in April, compared with April last year. March's surplus was $754 million.
Leading the decline was milk powder, butter and cheese exports, down 27%, or $323million, on a year ago, because of lower quantities for whole milk powder and lower prices overall.
That overall decline was offset to some extent, as the quantity of dairy products exported rose 1.2%, led by whey, cheese and butter.
ASB rural economist Nathan Penny said exports to China had fallen 26%, during the year to April, much of that reflected in the 16.5% fall in milk powder, butter and cheese exports during the period.
China remained New Zealand's second top trading partner after Australia.
SNZ's international statistics manager Jason Attewell said the value of whole milk powder sent to China in April 2015 was a fifth of the value in April last year, while volumes were a third of what they were in April 2014, with lower prices making up the rest of the value decline.
Westpac's senior economist, Michael Gordon, said the $123million surplus was ''slightly ahead'' of market forecasts, noting late information on oil imports could yet prompt a trade revision by SNZ.
Mr Gordon said dairy exports were down by volume, but there was a small rise in prices, reflecting the short-lived drought premium which emerged earlier in the year.
''Excluding dairy, exports were flat for the month,'' he said.
