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

 


Current Account Deficit Improves

Embargoed until 10:45am – 20 December 2006

Current Account Deficit Improves

The seasonally adjusted current account deficit was $3,114 million in the September 2006 quarter, Statistics New Zealand said today. This deficit was $418 million lower than the June 2006 quarter deficit, which was mainly due to an improvement in the investment income deficit. There was little change in the seasonally adjusted goods balance, with both exports and imports of goods increasing by similar amounts this quarter.

The $463 million narrowing of the investment income deficit was driven by lower profits earned by foreignowned New Zealand companies, combined with an increase in earnings from New Zealand’s investments abroad. The value of exports of goods rose $242 million from the June 2006 quarter to the September 2006 quarter, with export volumes driving the increase. The major export commodities contributing to the rise in export volumes were forestry products, and food and beverages. Import prices and volumes both contributed to the $240 million increase in the value of goods imports.

The current account deficit for the September 2006 quarter was financed by a $4.4 billion net inflow of capital into New Zealand this quarter. This was the result of $7.8 billion of foreign investment into New Zealand during the quarter exceeding $3.4 billion of New Zealand investment abroad. The New Zealand banking sector was the most significant contributor to these investment transactions.

The year ended September 2006 current account deficit was $14.4 billion (9.1 percent of GDP), compared with the year ended June 2006 deficit of $15.1 billion (9.7 percent of GDP). The lower year-ended deficit was mainly due to a $1.4 billion increase in the value of exports of goods, which was partly offset by a $0.7 billion rise in the value of imports of goods. This is the first time since March 2003 that the year ended deficit has narrowed between quarters.

At 30 September 2006, New Zealand's balance sheet with the rest of the world was in a net liability position of $137.1 billion. Compared with one year earlier, New Zealand's net liabilities to overseas have risen by $9.7 billion. Net overseas debt (lending less borrowing) now forms 88.4 percent of New Zealand's net liabilities to overseas investors, compared with 82.9 percent one year ago.

Brian Pink
Government Statistician

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news