Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

NZ Current Account Deficit Now 8.3% Of GDP

New Zealand Current Account Deficit Now 8.3% Of GDP


Click for big version

New Zealand’s current account deficit blew out in the third quarter, widening to NZ$5.2 billion from NZ$3.0 billion (revised from NZ$2.9 billion) in 2Q. The deficit in the year to September rose to NZ$14.2 billion from NZ$13.7 billion in the year to June; the deficit rose from 8.1% of GDP to 8.3% in the third quarter, according to Statistics New Zealand.

The key driver of the worsening quarterly deficit was the deteriorating goods balance, which fell from a slight surplus in 2Q to a massive deficit of NZ$1.6 billion in the most recent quarter. Exports declined while imports rose on the back of the strong NZD and firm domestic demand. Robust domestic demand has seen the current account deficit widen from 3.2% of GDP in early 2002 to over 8.0% this year. The services balance also widened, meaning that the goods and services balance blew out to more than NZ$2 billion from close to zero in 2Q. According to Statistics New Zealand, the current account deficit was financed by a net capital inflow of NZ$5.4 billion in 3Q as inbound foreign investment of NZ$7.9 billion exceeded investment abroad of NZ$2.5 billion.

In 2008, the trade balance should improve as the NZD depreciates, boosting the competitiveness of Kiwi exporters. The income balance, however, will likely remain in deficit even though Kiwi investments abroad should pick up slightly. As such, the current account deficit should narrow toward 8.0% of GDP in 2008.

  • In seasonally adjusted terms, the current account deficit rose NZ$120 million to NZ$3.6 billion in 3Q.

  • The CAD for the year ended September 2007 rose to NZ$14.2 billion (8.3% of GDP), compared with $13.7 billion (8.1% of GDP) previously.

  • Net international liabilities were NZ$151.1 billion, up 1.6% from the June 2007 quarter.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop 3.0: How You Can Help Scoop’s Evolution

Entering into its third decade of operation, the Scoop news ecosystem is set to undergo another phase of transformation and evolution.

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

 
 

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>

ALSO:

Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>

ALSO:

United Future History: "All Good Things Must End"

'We’re extremely proud of what we’ve achieved over the past 15 years, working alongside the government of the day, both National and Labour.' Mr Light told members on Monday. More>>

Gordon Campbell: On The TPP Outcome, And The Hobbit Law

Somehow the Trans Pacific Partnership trade deal has come lurching back from the dead – and as predicted in this column last week, the member countries gathered in Vietnam have announced a deal in broad principle, shunted aside until a later date the stuff on which they don’t agree, and declared victory. More>>

Agreeing To Differ: Greens Maintain Opposition To TPPA
“The Green Party has long opposed the TPPA. The new proposed deal, which came out of the weekend’s talks, still contains key ISDS concessions to corporations that put our democracy at risk, so our position remains the same,” said Green Party trade spokesperson Golriz Ghahraman. More>>

ALSO:

Monitoring Report: A New Chapter For Children’s Rights In New Zealand?

The Children’s Commissioner is calling on the country to embrace children’s rights to ensure their overall well-being. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election