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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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