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

 


NZ annual current account gap narrows in 3Q

NZ annual current account gap narrows in 3Q as trade balance shrinks

Dec. 19 (BusinessDesk) – New Zealand’s annual current account deficit narrowed as expected in the third quarter, driven by a decline in the trade surplus and as overseas investors earned less from their local investments.

The current account gap was $9.89 billion in the year ended Sept. 30, from a deficit of $10.09 billion three months earlier, according to Statistics New Zealand. An annual gap of $9.83 billion was expected, according to a Reuters survey. The annual deficit narrowed to 4.7 percent of gross domestic product from 4.9 percent.

The kiwi dollar traded recently at 84.13 cents, little changed from immediately before the report, when it was at 84.17 cents. While a large current account deficit in theory worries financial markets because it shows a country is spending more than it earns, in reality New Zealand hasn’t been marked down by ratings agencies as a result.

The actual deficit rose to $4.42 billion in the latest quarter from $1.8 billion in the second quarter, in line with forecasts.

In seasonally adjusted terms, the gap narrowed to $2.5 billion from $2.8 billion as the trade balance fell to $220 million from $341 million in the second quarter. Imports outpaced exports, led by oil imports, while the gain in exports was driven by shipments of dairy products. In the year, the balance on goods was a surplus of $1.7 billion, down from $3.1 billion in the year ended Sept. 30, 2011.

The services deficit widened to $303 million in the latest quarter from a gap of $216 million three months earlier, mainly due to imports of insurance and computer services. Insurance premiums have been rising in the wake of the Canterbury earthquakes and other global disasters.

The income deficit fell to $2.26 billion in the third quarter from $2.8 billion in the second quarter, mainly as a result in reduced profits of foreign-owned companies. The income deficit in the year fell to $10.4 billion from $10.7 billion a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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