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.

ENDS

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

http://img.scoop.co.nz/media/pdfs/1303/BalanceOfPaymentsDec12qtr.pdf

http://img.scoop.co.nz/media/pdfs/1303/bopiipdec2012alltables.xls

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news