New Zealand’s annual trade deficit unexpectedly shrank in May as exports rose more than forecast and imports lagged predictions.
The country’s trade deficit fell to $2.57 billion in the 12 months through May, according to Statistics New Zealand. That was lower than the $2.66 billion annual deficit in April and the $2.9 billion forecast by economists in a Reuters survey.
For the month of May, New Zealand had a surplus of $350 million, beating expectations for a $100 million deficit.
May exports declined 4.7 percent to $4.36 billion in May from the year earlier month, ahead of expectations for $4.27 billion. The export decline was led by a 28 percent drop in milk powder, butter and cheese.
Meanwhile, imports in May fell 7 percent to $4.01 billion in May from a year earlier, less than the $4.29 billion expected. Imports of intermediate goods declined, led by crude oil, and capital goods.