New Zealand trade deficit widens to NZ$1.97 billion

New Zealand’s merchandise trade deficit widened significantly to NZ$1.971 billion in September, far exceeding the market expectation of a NZ$775 million shortfall. This represents an increase from the revised NZ$1.536 billion deficit recorded in August.

The widening gap was driven by a surge in imports, which rose 18% to NZ$8.4 billion. A primary factor was a 96% jump in petroleum imports, valued at an additional NZ$608 million compared to the previous year, largely due to higher prices. Other notable increases included electrical and mechanical machinery.

While exports grew by 12% to NZ$6.5 billion—supported by higher shipments of dairy products, meat, and aluminium—the growth was insufficient to offset the rising costs of imports. The annual merchandise trade deficit also expanded, reaching NZ$6.2 billion for the year ended September 2026.