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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news