Statistics: September quarter exports drop
Wednesday 9 Dec 2020Export performance in our key industries for the third quarter are a reminder of how Covid has affected our economy this year - In the September 2020 quarter Lower export prices for dairy, meat, and logs led to the biggest drop in terms of trade since June 2009, Stats NZ said last week.
Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever level in June 2020. This is the third largest fall in export prices since the series began. Import prices fell 3.7 percent, resulting in a terms of trade fall of 4.7 percent.
The terms of trade measures the purchasing power of New Zealand’s exports abroad and is an indicator of the state of the overall economy. A fall in the terms of trade means the country can buy fewer imports for the same amount of exports.
“Export prices for dairy products fell 12 percent overall in the quarter,” business prices manager Bryan Downes said. “Dairy values have been the most affected with a 16 percent drop in the quarter compared with a 3.3 percent fall in dairy volumes exported," Mr Downes said. “Dairy is one of New Zealand’s top exports, along with travel services, both of which have seen falls in value this quarter.”
Also contributing to the fall in export prices were lower forestry products prices, which fell 11 percent in the September 2020 quarter, following an 11 percent rise last quarter. Forestry products export volumes rose 27 percent in the quarter.
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