New Zealand Export Volumes Post Best Quarterly Gain in 10 Years

New Zealand saw its biggest jump in export volumes in 10 years in the second quarter, adding to signs the economy stabilized after starting the year in recession.

Export volumes rose 6.8% from the first quarter, Statistics New Zealand said Monday in Wellington. That’s the biggest gain since the fourth quarter of 2013. Import volumes fell 2.8%, suggesting net exports made a positive contribution to gross domestic product during the quarter.

Most economists are tipping that the economy grew slightly in the three months through June, following contractions in the fourth quarter of 2022 and the first quarter of 2023. Still, several forecasters, including the Reserve Bank, project a double-dip recession will hit the economy in the second half of this year.

The second-quarter GDP report is due Sept. 21 and economists will get a clearer read of the data from construction and manufacturing reports this week. Retail sales volumes fell more than expected, according to a report last month. 

The jump in export volumes was led by a 19% surge in dairy products, while all other export categories increased, according to the statistics agency.

The increase in volumes offset a third straight quarter of weaker export prices as slower economic growth in China hurts global commodity prices.

New Zealand’s terms of trade rose 0.4% in the quarter, but has fallen 3.6% from a year earlier as export prices fell at almost three times the pace of import prices.