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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news