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

 


Drought contributes to larger current account deficit

Drought contributes to larger current account deficit

18 September 2013

New Zealand's seasonally adjusted current account deficit was $2.2 billion in the June 2013 quarter, Statistics New Zealand said today. A fall in exports of goods increased the deficit in the current account by $0.1 billion.

A current account deficit means that New Zealand is spending more than it is earning from the rest of the world.

"This quarter we earned less from our dairy exports, due to the dry weather affecting production earlier in the year," balance of payments manager Jason Attewell said.

For the year ended June 2013, New Zealand's current account deficit narrowed to $9.1 billion (4.3 percent of GDP). The smaller deficit than for the March 2013 year (when it was 4.5 percent of GDP) was due to a fall in profit earned by foreign-owned companies in New Zealand.

International investment position stays flat

At 30 June 2013, New Zealand's net international liability position was $151.3 billion (71.1 percent of GDP), compared with a revised figure of $151.6 billion at 31 March 2013.

New Zealand's international investment position shows the difference between the value of New Zealand's investments abroad and the value of foreign investments in New Zealand. "While New Zealand's net international investment position remained flat over the June quarter, within that, government debt to the rest of the world fell," Mr. Attewell said.

Net government debt to the rest of the world fell by $4.5 billion, down to $7.8 billion (3.7 percent of GDP) at 30 June 2013.

The net international liability position includes outstanding overseas reinsurance claims (as New Zealand's assets) from the Canterbury earthquakes. At 30 June 2013, a total of $10.5 billion of these claims had been settled with overseas reinsurers, leaving $8.1 billion of claims outstanding.

For more information about these statistics: Visit Balance of Payments and International Investment Position: June 2013 quarter

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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