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


Dairy exports drive NZ surplus on goods, services to record

Dairy exports drive NZ surplus on goods and services to record, shrinking current account gap

March 19 (BusinessDesk) – Dairy exports drove New Zealand’s surplus on goods and services to a record in the fourth quarter, helping offset an outflow of profits from foreign-owned companies and shrinking the nation’s current account deficit.

The current account gap fell to $1.43 billion in the fourth quarter, from a revised deficit of $4.88 billion in the third quarter, according to Statistics New Zealand. The annual gap fell to $7.55 billion, or 3.4 percent of gross domestic product, from $8.87 billion, or 4.1 percent. Economists polled by Reuters had expected a quarterly deficit of $1.41 billion for an annual gap of $7.41 billion.

The kiwi dollar last traded at 86.21 US cents, little changed from immediately before the figures were released. The trade-weighted index was at 80.27 from 80.30.

The seasonally adjusted balance on goods and services turned to a surplus of $1.8 billion, the highest since the series began in 1987 and a $1.9 billion turnaround from the September quarter deficit. That was driven by a $1.4 billion increase in exports of goods, led by dairy products, the government statistician said.

“A sharp rebound in export volumes, after the severe drought in early 2013, led to the strongest seasonally-adjusted goods balance on record,” said Michael Gordon, senior economist at Westpac Banking Corp.

The income deficit widened by $330 million to $2.6 billion compared to the third quarter, reflecting $259 million higher profits earned in New Zealand by overseas companies, while income earned on New Zealand’s investments abroad fell by $35 million. The statistics agency said much of the profit earned in New Zealand was reinvested back into the local businesses rather than being paid in dividends.

New Zealand’s net international liabilities fell to $147.6 billion, or 66.6 percent of GDP, at Dec. 31, from $149.5 billion, or 69.2 percent, three months earlier, the report showed.

Outstanding claims on overseas reinsurers for the Canterbury earthquakes were about $5.9 billion as at Dec. 31, down from $6.998 billion three months earlier.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news