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


Annual current account deficit up as exports fall

Annual current account deficit up as exports fall – Media release

20 March 2013

New Zealand's current account deficit for the year ended December 2012 was $10.5 billion (5.0 percent of GDP), Statistics New Zealand said today.

A current account deficit means the rest of the world earned more from New Zealand than New Zealand earned from overseas.

The increase in the deficit from $9.9 billion (4.7 percent of GDP) for the year ended September 2012 was mainly due to a $1.3 billion fall in exports of goods and services. Exports of dairy and crude oil were both lower than for the September 2012 year, while expenditure by overseas visitors to New Zealand also fell.

"Dairy prices were much lower than a year ago, while overseas visitor spending has fallen from last year's boost by the Rugby World Cup," balance of payments manager John Morris said.

Quarterly current account deficit also increases

In the December 2012 quarter, New Zealand's current account balance, when adjusted for seasonal factors, was a deficit of $2.7 billion. This compares with a deficit of $2.5 billion for the previous quarter.

The larger deficit this quarter was mainly due to a rise in income earned by foreign investors in New Zealand. Foreign shareholders in New Zealand companies received larger dividend payments in the latest quarter.

New Zealand funded the current account deficit mainly by borrowing from overseas. Foreign investors purchased $3.1 billion of government bonds this quarter.

As a result of this increased borrowing, New Zealand's net international liability position was $150.0 billion (71.7 percent of GDP) at 31 December 2012, up $2.2 billion from 30 September 2012.


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

© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news