New Zealand's exports rose faster than its imports in September, and the three months to the end of September but the nation is still recording trade deficits.
Statistics New Zealand says exports rose 9.4% to $12.1 billion in the September quarter while imports rose 8.4% to $12.7 billion, resulting in a quarterly deficit of $637 million.
In September, exports rose 17% while imports actually fell 1.2% although the monthly deficit was $199 million.
In both cases, dairy exports led the increases rising 52% in September and 20% in the quarter.
Statistics New Zealand says quantities of dairy exports changed little in the quarter meaning the rise in value was because prices were higher.
BNZ economist Doug Steel says dairy exports are likely to further improve.
"A lot of the milk being made at the moment is going to be sold at very good prices and that will come through the external accounts in the coming months, that's going to help the trade balance enormously."
On an annual basis, the trade deficit stood at $1.5 billion, its widest in four years.
Despite a high New Zealand dollar, economists say high dairy prices should hold up exports, although that will be countered by rising import demand as Canterbury is rebuilt and the economy improves.
