Imports are collapsing but exports are rising, especially to China after the free trade deal which came into force late last year, the Timaru Herald reported.
That helped pushed New Zealand's May trade figures to a "very healthy" US$560 million surplus, economists said - the highest level in 16 years.
Statistics New Zealand figures show the surplus for the month was equal to 21.7 percent of exports - the highest percentage since 1993. Exports hit $2.6 billion in May, up almost six percent on the same month last year.
New Zealand has run a string of trade surpluses since February, helped by farm-based exports and a slump in imports because of the recession, ASB Bank economists said.
The surplus was much bigger than most economists expected and helped reduce the annual deficit to just more than $2 billion.
The strong trade figures suggest the economy may continue in recession in the June quarter, but there will be a modest upturn in the September quarter. |
