New Zealand Q1 2025 terms of trade +1.9% q/q (expected +3.1%)

New Zealand Q1 2025 terms of trade index +1.9% q/q

• expected +3.6%, prior +3.1%
• for the y/y +17%

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Export Prices +7.1%, led by dairy prices

• expected +3.7%, prior +3.2%

Import Prices +5.1%

• expected +1.3%, prior +0.1%

Stats NZ cites the Reserve Bank of New Zealand’s trade weighted NZD index

• fell 5.3% y/y in the quarter
• New Zealand dollar weakening against most major currencies

• “The weaker New Zealand dollar has contributed to the rise in import and export prices”

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Export Volumes +4.6%

• prior +1.3%
• Import volumes -2.4% q/q

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• Terms of trade refer to the ratio between the prices of a country’s exports and the prices of its imports. In other words, it’s the relative value of a country’s exports to its imports.
• When the terms of trade of a country are improving, it means that the prices of its exports are increasing faster than the prices of its imports. This can lead to an increase in the purchasing power of the country’s exports, which can boost economic growth.
• On the other hand, if a country’s terms of trade are deteriorating, it means that the prices of its imports are increasing faster than the prices of its exports. This can lead to a decrease in the purchasing power of the country’s exports, which can negatively impact economic growth.

This article was written by Eamonn Sheridan at www.forexlive.com.