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.


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

© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news