Our terms of trade rose 3.1% in the December quarter on the back of rising export prices, particularly for dairy, beef and lamb, Statistics NZ reports.
Stats NZ says the terms of trade represent the ratio of export prices to import prices. "They can be interpreted as a measure of New Zealand’s purchasing power on the international stage and as an indicator of the relative strength of the New Zealand economy."
The total export price index rose 3.2% and the import price index rose 0.1% in the December 2024 quarter, compared with the September 2024 quarter - meaning a 3.1% rise in the terms of trade.
Export prices for meat products, New Zealand’s second largest export commodity by value after dairy, rose 6.8% in the December quarter. Lamb prices rose 7.0%, while beef and veal prices rose 6.1%.
"Lamb and beef export prices have experienced growth since March 2024," Stat NZ's international account spokesperson Viki Ward said.
"They are 15% and 17% higher [respectively] now than March 2024 levels," she said.
Prices for dairy products rose 3.5%, with milk powder up 3.5% and butter up 3.0%.
In terms of the 0.1% rise in import prices - falling prices for petroleum and petroleum products (down 9.5%), offset rising prices in other categories.
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