The rising price of dairy exports helped lift New Zealand’s terms of trade in the quarter to the end of June to its highest in 37 years, the government statistics agency announced Thursday.
The terms of trade –the index of the price of exports in terms of imports– rose 2.3 percent, meaning 2.3 percent more imported goods could be paid for by a fixed quantity of exported goods than in the March quarter, according to Statistics New Zealand.
The rise was due to export prices rising 1.8 percent and import prices falling by 0.5 percent, although the volume of imports dropped 2.4 percent.
The rise in the June quarter reflected price increases of 4.5 percent for the country’s biggest export, dairy products, 12.8 percent for petroleum and related products, 2.9 percent for meat, and 12.2 percent for wool.
In the year to the June quarter, wool prices have risen by 58.3 percent –their largest increase since the December 1976 quarter– to reach their highest level since the December 1989 quarter.