Annual imports drop sharply in wake of COVID-19

Imports fell heavily in 2020, down $7.4 billion compared with the year to December 2019, but exports held up in in the year, despite the COVID-19 pandemic, Stats NZ said today.

“Annual imports started to drop away in the early stages of 2020, as the pandemic spread, affecting cargo supply lines and factory production around the world,” international trade manager Alasdair Allen said.

“The December year fall in annual imports was the largest annual December fall since December 2009,” Mr. Allen said.

“New Zealand imported much less fuel as international travel dried up, and the lockdown meant less travel within the country too,” Mr. Allen said.

“Car imports also fell sharply after the lockdown when non-essential businesses closed, including car yards.”

Key imports drop down a gear

Imports of petroleum and products fell $2.4 billion in 2020, following COVID-19 travel restrictions.

Imports of vehicle, parts, and accessories also fell, by $2.1 billion.

With little international travel, demand for turbojets and turbo-propellers fell, with imports of mechanical machinery and equipment down $1.1 billion.

These falls were partly offset by rises in other imports, led by ships, boats, and floating structures, up $224 million. This was buoyed by the arrival of the Navy ship Aotearoa in June . Imports of food residues and waste were up $202 million in the year to December, led by palm kernel oil cakes, used for animal feed.

Breathing equipment inflates exports

In contrast to the sharp drop in imports, annual exports were relatively unchanged in 2020, up $24 million to $60 billion in the year to December 2020.

• Breathing equipment (respiratory equipment) was up $526 million, due to high demand during the COVID-19 pandemic.
• Fruit exports rose $525 million, driven by higher volumes and prices for kiwifruit.
• Aircraft and parts rose $435 million, as planes were sent to the United States for storage, during the slump in international travel.
• Preparations of cereals, flour, and starch, were up $204 million, driven by infant formula.

Trade surplus near record levels

November and December saw record numbers with large falls in imports, and exports holding their own. This resulted in an annual trade surplus of $2.9 billion in December 2020.