New Zealand’s merchandise terms of trade rose 3.7% quarter-on-quarter in the three months to December 2025, reversing the prior quarter’s 2.1% deterioration and way above expectations of a 0.7% drop. The improvement reflected stronger relative export prices, which rose 5.3%, against a 1.5% increase in import prices. In value terms, export values for goods rose 1.6% to $19.4 billion as export volumes fell 3.2%, while import values rose 5.3% to $20.5 billion as import volumes rose 5.8%. The stronger terms of trade indicate increased purchasing power for New Zealand exporters despite falling export volumes.