### Summary
The latest trade figures for New Zealand show a larger-than-expected $1.1 billion trade deficit for July, mainly due to a 14% decrease in dairy exports and the economic slowdown in China.
### Facts
- 📉 New Zealand experienced a bigger-than-expected trade deficit of $1.1 billion in July, driven by a 14% drop in dairy exports.
- 📉 The 12-month running deficit is $15.8 billion, lower than the previous record of $17.1 billion in May but higher than the $12 billion deficit a year ago.
- 🌍 The overseas merchandise trade statistics focus on imports and exports of merchandise goods, while the balance of payments figures encompass the country's total transactions with the rest of the world.
- 📊 The current account deficit decreased to $33 billion in March, accounting for 8.5% of GDP compared to 9% in December.
- 📉 In July, goods exports fell by $890 million (14%) to $5.5 billion, while goods imports fell by $1.2 billion (16%) to $6.6 billion.
- 🥛 The largest export commodity group, including milk powder, butter, and cheese, dropped by $350 million (19%) to $1.5 billion compared to the previous year.
- 🔽 Exports to China decreased by $407 million (24%) year-on-year, with notable declines in meat and edible offal, preparations of milk, cereals, flour, and starch, and milk powder, butter, and cheese.
### Summary
India's total exports and imports of goods and services surpassed $800 billion in the first half of 2023, with a healthy growth in the services sector offsetting a slowdown in global demand.
### Facts
- 📈 Exports of goods and services rose by 1.5% to $385.4 billion in January-June 2023 compared to the same period in 2022.
- 📉 Imports declined by 5.9% to $415.5 billion during the first half of 2023, compared to January-June 2022.
- 💵 Standalone goods exports dropped by 8.1% to $218.7 billion, while imports contracted by 8.3% to $325.7 billion.
- 💼 Services exports grew by 17.7% to $166.7 billion, while imports rose by 3.7% to $89.8 billion during the six-month period.
- 💰 The depreciation of the Indian Rupee didn't prevent the decline in merchandise exports, and weak global demand and loss of competitiveness in labor-intensive sectors contributed to the modest decline.
- 🌍 Several factors, including conflicts, inflation, monetary policies, and financial uncertainty, are expected to weaken world trade in 2023.
- 🛡️ India should focus on increasing product quality and supply chain competitiveness, retain policy space in free trade agreements and Indo-Pacific Economic Framework for Prosperity (IPEF), and be prepared to respond to unilateral policy decisions.
- 📊 Among the product categories contributing to India's exports, 11 out of 29 registered positive export growth, while 18 declined during January-June 2023.
- 📱 Smartphone exports surged to $7.5 billion in the first half of 2023, up from $2.5 billion in the same period in 2022.
- 🌐 India's exports declined in 134 of the 240 countries it exports goods to, with major declines observed in the USA, UAE, China, Bangladesh, and Germany.
- 🌐 India's export promotion should focus on the 41 countries where its exports exceed $1 billion, accounting for 87% of its exports.
- 👥 The top 15 countries with which India has the highest trade deficit include China, Russia, Saudi Arabia, Iraq, and Switzerland.
- 📉 The share of free trade agreement partners in India's merchandise exports decreased from 30.1% in the first half of 2022 to 26.8% in 2023.
- ⛽ Import of crude petroleum declined by 7.6% to $73.2 billion in January-June 2023, with Russia's share in India's import of petroleum crude increasing significantly.
- 🌍 Import growth from major suppliers like Iraq, Saudi Arabia, and the UAE declined during this period.
Pakistan's textile industry is facing significant challenges, with textile exports falling by 15% and many mills and manufacturing units shutting down or facing closure due to lack of orders. The industry is also grappling with economic slowdown, disruptions in the global supply chain, and a decrease in cotton production. These issues have resulted in job losses and a decline in export volume, impacting not just the economy but also the livelihoods of many workers.
Japan's exports fell in July for the first time in nearly 2-1/2 years, driven by weak demand for light oil and chip-making equipment and raising concerns about a global recession as the demand in key markets such as China weakens.
Indian exporters are hedging more of their future foreign currency receipts as the rupee's decline to near record low levels allows them to lock in better exchange rates, with data showing that $3.6 billion was hedged in two sessions, a 60% increase compared to August levels.
India's foreign exchange reserves have fallen to a two-month low of $594.89 billion due to a decline of $7.27 billion, the largest weekly fall in over six months, as the rupee dropped to a 10-month low against the U.S. dollar.
South Korea's exports are likely to have fallen for the 11th consecutive month in August due to a slower Chinese economy and weakening demand in other regions.
German exports fell 0.9% in July, less than expected, due to global demand weakness and supply-chain friction.
U.S. manufactured goods orders experienced a significant 2.1% decline in July, the first drop in four months, due in part to higher interest rates impacting business equipment spending.
China's share of US goods imports has dropped to its lowest level since 2006, as American companies reorganize supply chains to reduce dependence on China and shift to countries like Mexico and Vietnam.
China's imports and exports experienced a monthly decline in August, with exports falling by 8.8% and imports falling by 7.3%, indicating ongoing challenges despite some slight improvement.
India has dropped retaliatory customs tariffs on American goods such as almonds, apples, walnuts, and lentils, just before U.S. President Joe Biden's visit to New Delhi for a bilateral meeting and the G-20 Summit.
Singapore's annual exports fell for the 11th consecutive month in August, declining by 20.1% as the trade-dependent economy struggles with global headwinds and declining demand, indicating that export stabilization is not yet within reach.
Japan's exports to China declined for the ninth consecutive month in August, dropping 11%, due to weak demand and the suspension of seafood imports following the Fukushima Daiichi nuclear plant incident.
The US trade deficit in goods decreased by 7.3% in August to $84.3 billion, mainly due to reduced consumer imports like the new iPhone, which could boost the gross domestic product (GDP) for the third quarter.
India's retail inflation is expected to drop below 6% in September due to cooling prices for essential commodities, although food inflation stood at around 10% in August.
