June BOP underscores strong economy
Hon Steven Joyce
Minister of Finance
20 September 2017
June BOP underscores strong economy
Better than expected balance of payments figures out this morning underscore the strength of both the services and goods sectors of the New Zealand economy, Finance Minister Steven Joyce says.
New Zealand's current account deficit narrowed to $1.6 billion in the June 2017 quarter, $1.2 billion lower than in the previous quarter. This is mainly driven by the services sector, with a surplus of $1.3 billion, the highest surplus on record.
New Zealand’s current account deficit is 2.8 per cent of GDP in the June year, down from 2.9 per cent in the last quarter, ahead of market forecasts for a deficit of 3.1 per cent.
"Today’s result is one of the dividends of an increasingly diversified economy, with both services and goods exports performing well in the quarter,” Mr Joyce says. “The services sector in particular, had a strong run in the quarter driven by $3.7 billion of spending by overseas travellers.”
Key highlights
included:
· Services surplus increased $295
million to $1.3 billion
· The goods deficit
decreased $677 million to $446 million
· New
Zealand’s net international liability position is
equivalent to 57.5 per cent of GDP, down from 57.8 per cent
in the previous quarter, the lowest since records
began.
"The days of New Zealand as a one-trick economy are
behind us, but this does not mean we can rest on our
laurels. We need to continue the government's strong
economic plan so we can further diversify and grow our
economy.”
ends