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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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