Hon Dr Michael Cullen
Minister of Finance

25 March 2004 Media Statement

Caution in Positive Balance of Payments Result

The narrowing of the balance of payments deficit in the December quarter suggests the export sector is showing some resilience in the face of the strong New Zealand dollar, Finance Minister Michael Cullen said today.

He was commenting on the latest BOP data showing a seasonally adjusted reduction in the current account deficit of $396 million.

"While this result is better than the markets were expecting and reflects an improvement in export volumes which is positive news for the economy, the evidence still points to a deterioration in our external position over the immediate term,” Dr Cullen said.

ENDS

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