New Zealand’s merchandise terms of trade climbed 3.7% quarter-on-quarter in the three months to December 2025, overturning the previous quarter’s 2.1% decline and sharply beating expectations for a 0.7% fall. The improvement was driven by comparatively stronger export prices, which rose 5.3%, versus a 1.5% increase in import prices.
In value terms, goods exports increased 1.6% to $19.4 billion, even as export volumes fell 3.2%. On the import side, the value of goods rose 5.3% to $20.5 billion, supported by a 5.8% increase in import volumes. Overall, the stronger terms of trade point to improved purchasing power for New Zealand exporters, despite the decline in export volumes.