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

 


Quarterly current account deficit narrows

Quarterly current account deficit narrows – Media release

The seasonally adjusted current account deficit narrowed to $2.5 billion for the September 2012 quarter, Statistics New Zealand said today. This compares with a deficit of $2.8 billion in the previous quarter.

The current account measures New Zealand's transactions with the rest of the world. A current account deficit means that the rest of the world earned more from New Zealand than New Zealand earned from overseas.

The smaller deficit this quarter was mainly due to a fall in profits earned by foreign-owned companies in New Zealand. These profits can be reinvested in New Zealand, or returned overseas as dividends.

"Although foreign-owned companies earned less in New Zealand this quarter, over $1.0 billion was still reinvested in New Zealand, the third quarter in a row that reinvested earnings have been at this level," balance of payments manager John Morris said.

A rise in insurance premiums partly offset the fall in profits earned by overseas-owned companies in the September 2012 quarter. Some insurance policies were renewed at higher premiums, which caused international insurance payments to increase by $84 million this quarter.

The annual current account balance was a deficit of $9.9 billion (4.7 percent of GDP) for the September 2012 year. This compares with a deficit of $8.8 billion (4.3 percent of GDP) for the September 2011 year. The larger annual current account deficit was due to a $1.4 billion increase in imports of goods, particularly oil and cars. The rise in imports of goods was partly offset by a fall in the income deficit, as New Zealand-owned companies earned more profits overseas in the latest year.

New Zealand's net international liability position was $148.4 billion (71.2 percent of GDP) at 30 September 2012, relatively unchanged from 30 June 2012. A net inflow of funds into New Zealand was mostly offset by exchange-rate changes decreasing the value of New Zealand's international liabilities.

An inflow of funds from overseas is required to fund a current account deficit – New Zealand's overseas expenditure is funded by either an inflow of foreign investment from overseas, or a withdrawal of New Zealand's assets held abroad.

The net inflow of funds into New Zealand in the latest quarter featured $1.3 billion of reinsurance claim settlements relating to the Canterbury earthquakes. Over one-third of total overseas reinsurance claims from the earthquakes has now been settled.

ENDS


Published 19 December 2012

For more information about these statistics:
• Visit Balance of Payments and International Investment Position: September 2012 quarter

• Open the attached files
http://img.scoop.co.nz/media/pdfs/1212/BalanceOfPaymentsSep12qtr.pdf

http://img.scoop.co.nz/media/pdfs/1212/bopiipsep12qtralltables.xls

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news