FX.co ★ New Zealand’s Trade Deficit Narrows Slightly in December, Still Deep in Negative Territory

New Zealand’s trade balance showed a marginal improvement in December 2025, with the deficit easing to -NZD 2,200 million from November’s revised -NZD 2,220 million. The latest data, updated on 28 January 2026, indicate that while external imbalances remain substantial, the trade gap has stopped widening on a month-to-month basis.

On a year-over-year comparison, December’s figure reflects how the current month stacks up against the same period a year earlier, while November’s reading similarly compared that month with its year-ago counterpart. The slight narrowing of the deficit suggests only a modest shift in trade dynamics, with New Zealand still facing a sizeable shortfall as imports continue to outpace exports.

For market participants and policymakers, the December outcome offers limited relief: the deficit has improved at the margin, but remains firmly in negative territory, underscoring ongoing vulnerabilities tied to New Zealand’s external sector and its sensitivity to global demand and pricing conditions.