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

 


Record dairy exports shrink current account deficit

Record dairy exports shrink current account deficit – Media release

19 March 2014

An increase in the value of dairy product exports has seen New Zealand record its smallest seasonally adjusted current account deficit since the March 2010 quarter, Statistics New Zealand said today.

The current account deficit was $0.8 billion in the December 2013 quarter, $1.7 billion smaller than in the September 2013 quarter.

"New Zealand exported record levels of dairy products this quarter, which drove the balance on goods and services to its highest-ever surplus" balance of payments manager Jason Attewell said.

However, an increase in New Zealand's investment income deficit partly offset the rise in goods exports. Foreign-owned companies in New Zealand earned their highest profits in four years, mostly due to higher profits earned by the corporate sector this quarter.

The annual current account deficit also fell, with increased exports of dairy products being the main contributor to this fall. The deficit fell to $7.5 billion (3.4 percent of GDP) for the year ended December 2013, down from $8.9 billion (4.1 percent of GDP) for the year ended September 2013.

The quarterly current account deficit was funded by a net inflow of foreign investment during the December 2013 quarter. Overseas investors increased their holdings of debt securities issued by New Zealand's banking sector over this time.

Despite the net inflow of foreign investment in the latest quarter, New Zealand's net international liability position fell to $147.6 billion (66.6 percent of GDP) at 31 December 2013. This compares with a net international liability position of $149.5 billion at 30 September 2013.

"Rising overseas share prices increased the value of New Zealand's overseas assets this quarter, while falling domestic share prices decreased the value of our overseas liabilities" Mr Attewell said.

ENDS

For more information about these statistics:
• Visit Balance of Payments and International Investment Position: December 2013 quarter
• Open the attached files
BalanceOfPaymentsDec13qtr.pdf
bopiipdec13qtralltables.xls

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news