[WELLINGTON] New Zealand’s trade deficit ballooned to the biggest in almost two years in July as soaring oil prices pushed imports to a record high.

The gap increased to NZ$1.95 billion (US$1.2 billion) from a revised NZ$237 million in June, Statistics New Zealand said on Friday (Aug 21) in Wellington. That’s the widest monthly shortfall since September 2024.

New Zealand imports all of its fuel and has been buffeted by increased costs as the Iran war unleashed a global energy shock. The value of fuel imports more than doubled to NZ$1.67 billion in July compared to the year-earlier month, driving overall imports to a record NZ$9.34 billion.

“The rising value of fuel imports over the period was predominately driven by higher prices,” the statistics agency said in a statement. Imports of vehicles and machinery also climbed while the value of imported fertiliser more than doubled, the report showed.

The data is provisional, subject to revision, and isn’t adjusted for the seasonal nature of the nation’s farm-based exports. That volatility was reflected in the June trade balance previously being reported as a NZ$23 million surplus.

Exports also increased from a year ago. However, given the peak season for dairy and fruit shipments has finished, the overall level fell back to its lowest since February and the trade deficit widened.

Economists monitor rolling annual trade data to account for seasonality. In the 12 months through July, imports climbed about NZ$9 billion or 11 per cent from the year-earlier period to NZ$89.8 billion. Fuel imports rose by NZ$2.3 billion to NZ$12.1 billion.

Annual exports gained 10 per cent and the annual trade deficit widened to NZ$5.24 billion – the biggest since March 2025. BLOOMBERG