Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Current Account Deficit Increases

Current Account Deficit Increases

The current account deficit for the December 2002 quarter stands at $1,892 million, according to Statistics New Zealand. After adjusting for seasonal variations in the pattern of importing and exporting, the December 2002 quarter current account balance is a deficit of $1,427 million. This seasonally adjusted deficit is $129 million larger than the September 2002 quarter deficit of $1,298 million, and is the third consecutive increase in the deficit.

The increase in the current account deficit was mainly due to a $223 million fall in the value of New Zealand's goods exports, which exceeded a $111 million fall in the value of goods imports.

This resulted in a $111 million reduction in the goods surplus, when compared with the September 2002 quarter. Falls in receipts for exports and payments for imports in part reflect the rising value of the New Zealand dollar.

The seasonally adjusted services surplus fell $26 million to reach $359 million in the December 2002 quarter.

Compared with the September 2002 quarter, the investment income deficit rose $95 million to reach $1,868 million in the December 2002 quarter, and was more than offset by a $105 million rise in the transfers surplus. The rise in the income deficit resulted from a $208 million rise in income attributed to foreign investors, which exceeded a $112 million rise in income earned from New Zealand's overseas investments. The rise in the surplus on transfers primarily reflected an increase in government receipts of non-resident withholding tax.

The latest estimate of the trend in the current account balance shows the deficit growing since the June 2002 quarter. This reflects a falling surplus in the goods and services trend. The trend deficit on the current account has approximately doubled since the June 2002 quarter.

At 31 December 2002, New Zealand's net international investment position was negative $100.9 billion. This 'net debtor' position (where New Zealand's international investment liabilities are greater than its international investment assets) was $1.6 billion larger than at 30 September 2002. The main factors causing the larger net debtor position were a reduction of New Zealand investment abroad, and a rise in financial derivative liabilities to overseas counterparties. Partly offsetting these factors was the effect of a rising New Zealand dollar, which reduced the value of New Zealand's foreign currency liabilities abroad by more than it reduced the value of New Zealand's foreign currency overseas assets.

Brian Pink

Government Statistician

© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news