In February 2025, New Zealand reported a trade balance of +510 million NZD, an improvement from the previous figure of -486 million NZD. Exports reached 6.74 billion NZD, up from 6.19 billion NZD.
Imports decreased to 6.23 billion NZD, down from 6.68 billion NZD. For the twelve months year-to-date, the trade balance stood at -6.513 billion NZD, an improvement from -7.223 billion NZD previously.
Exchange Rate Stability
The exchange rate for the New Zealand dollar remained relatively stable.
These figures paint a clear picture of improving trade conditions. A trade surplus of 510 million NZD in February points to a stronger export performance alongside a decline in imports. The shift from a deficit of 486 million NZD shows that more goods were sold abroad than purchased for that month.
Imports dropping to 6.23 billion NZD from 6.68 billion NZD suggests lower demand for foreign goods or changes in purchasing patterns among businesses and consumers. Whether this trend continues depends on factors such as domestic spending, supply chain adjustments, and global trade conditions. At the same time, exports rising from 6.19 billion NZD to 6.74 billion NZD indicates robust international demand for New Zealand’s goods.
The yearly trade deficit narrowing from 7.223 billion NZD to 6.513 billion NZD reflects a gradual correction in the trade position. If this pattern persists, it may ease economic pressures, particularly regarding currency valuation and broader market conditions.
Future Trade Considerations
Foreign exchange markets have shown little movement in response so far, as the New Zealand dollar has remained relatively steady. However, stability in the exchange rate does not necessarily imply that traders should expect this to continue without disruption. If trade numbers keep improving, the currency could experience shifts depending on external demand, interest rates, and global economic shifts.
Over the next few weeks, close monitoring of economic releases from trade partners will be of great importance. Movements in demand from key economies could influence pricing and valuations. While the trade data points to a more balanced external position, sudden changes in global demand or supply chain costs could quickly alter momentum.
