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

 


Imports drive larger current account deficit

Imports drive larger current account deficit – Media release

18 December 2013

New Zealand's seasonally adjusted current account deficit was $2.6 billion in the September 2013 quarter, Statistics New Zealand said today. This is a $0.3 billion larger deficit than in the June 2013 quarter, and the largest current account deficit since the December 2008 quarter.

The increase in the deficit this quarter was mainly due to imports of goods and services increasing by more than exports.

"For the first time in five years, New Zealand imported more goods and services than we exported," balance of payments manager Jason Attewell said.

Goods imports increasing by more than goods exports also drove the increase in New Zealand's annual current account deficit. The deficit increased from $8.2 billion (3.9 percent of GDP) in the June 2013 year to $8.8 billion (4.1 percent of GDP) in the September 2013 year.

In this release, we include improvements to estimates for spending by international visitors and students in New Zealand. We also include an estimate for imports of goods valued below the $1,000 Customs threshold for the first time. The current account balance has been revised back to the June 1982 quarter.

"These data improvements decreased our average current account deficit as a percentage of GDP to 4.8 percent over the last 10 years, from 5.6 percent," Mr Attewell said.

 Net international liabilities decrease

At 30 September 2013, New Zealand's net international liability position was $150.1 billion (69.5 percent of GDP), down from 151.6 billion (71.2 percent of GDP) at 30 June 2013. The smaller net position in the latest quarter was driven by changes in the value of New Zealand's overseas assets and liabilities, rather than transactions through the financial account.

Within the net international liability position, the banking sector reduced their borrowing by $9.2 billion. As a result, the banking sector's net overseas debt fell to its lowest level since the March 2007 quarter.

Visit Balance of Payments and International Investment Position: September 2013 quarter

BalanceOfPaymentsSep13qtr.pdf

bopiipsep13qtralltables.xls

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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