Current account deficit widens
Current account deficit widens
17 December 2014
New Zealand's seasonally adjusted current account balance was a deficit of $2.5 billion in the September 2014 quarter, Statistics New Zealand said today. This is $490 million larger than the June 2014 quarter deficit.
The value of goods exported fell $380 million in the September 2014 quarter. This fall was driven by an 11.4 percent fall in dairy product prices. The value of goods imported rose $325 million, led by an increase in imports of aircraft and oil stocks held overseas by New Zealand-based oil companies.
"With the value of goods exports falling and imports rising, the current account deficit is now the largest it has been in nearly six years," international statistics manager Jason Attewell said.
A current account deficit means New Zealand's earnings from the rest of the world are less than our overseas expenditure. This quarter's deficit was funded by a net inflow of foreign investment into New Zealand.
New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014.
New Zealand's net international liability position, which measures the value of our overseas assets less our overseas liabilities, widened $0.8 billion to $152.3 billion (64.3 percent of GDP) at 30 September 2014. A depreciating New Zealand dollar between 30 June and 30 September resulted in higher values for both overseas assets and liabilities.
New Zealand's net external debt position, which is the difference between overseas lending and borrowing, fell $0.5 billion to $141.8 billion (59.9 percent of GDP). As a percentage of GDP, net external debt has been falling for almost two years, and is at its lowest level since 31 December 2003.
For more information about these statistics: Visit Balance of Payments and International Investment Position: September 2014 quarter
ENDS