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

 


NZ current account deficit widens in 2Q on drought effects

NZ current account deficit widens in 2Q on drought effects

By Pattrick Smellie

Sept. 18 (BusinessDesk) – New Zealand’s current account deficit came in at a seasonally adjusted $2.2 billion for the three months to June 30, reflecting the impact on agricultural exports of the late summer drought.

The actual deficit was a quarterly $1.25 billion, smaller than economists’ consensus forecasts of around $1.81 billion. For the year to June 30, the current account deficit shrank to $9.1 billion, or 4.3 percent of gross domestic product, compared to a deficit at 4.5 percent of GDP in the year to March 31.

The annual improvement reflected a substantial revision in the March quarter deficit, which came down from the $663 million gap initially reported to a final figure of $416 million and slowing investment income outflows in the most recent period.

“Foreign-owned companies I n New Zealand made lower profit in the latest year, and paid less interest on loans received from their overseas parents,” Statistics New Zealand said in its official release.

The investment income deficit of $2.0 billion in the June quarter was $269 million lower than in the previous quarter.

The country’s net international liabilities position remained stable at June 30 at $151.3 billion, or 71 percent of GDP, compared with a revised figure of $151.6 billion at March 31.

However there were changes in the composition of that figure with the New Zealand government paying down debt and net private sector debt increasing, spurred by the first increase in net banking sector liabilities in six quarters.

The kiwi dollar was little changed at 82.35 US cents from 82.31 cents immediately before the release.

Net government debt to the rest of the world fell by $4.5 billion in the quarter to $7.8 billion, or 3.7 percent of GDP, the first improvement in the official debt position since March 2011.

Net banking sector borrowing from overseas was up $4.4 billion to $108.3 billion, at $50.9 percent of GDP.

The impact of the drought was the primary factor in a fall in exported goods of $498 million compared to the March quarter, as volumes fell by 18.1 percent. Imports were down $119 million on the previous quarter.

The balance on services was a deficit of $155 million for the quarter, $27 million less than the previous quarter, and featured higher earnings from providing financial services to overseas clients and from merchanting services. Offsetting this was a $92 million increase in imports of services over the quarter, reflecting technical services related to oil extraction.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news