New Zealand's trade deficit narrowed by more than expected in November

New Zealand's trade deficit narrowed more than expected in November as a result of a pick-up in exports. However, this wasn't enough to stop the trade deficit for the year widening to -$3.7b, the largest it's been since 2009. 

After adjusting for normal season variations, exports were up 2.9% over November as gains in exports to the EU and China offset softer demand from Australia. Growth was mainly a result of increased exports of dairy and meat products, the latter potentially reflecting the impact of early slaughter due to dry weather. 

Imports rose by 5.8% in seasonally adjusted terms. This was underpinned by the importation of transport equipment which can be lumpy. However, there was also a 4% increase in imports of consumption goods, reflect the current strength of household demand.