NZ posts $4.6 billion current account deficit in September qtr

By NZPA

Wednesday 20th December 2006

New Zealand posted a $4.6 billion current account deficit in the September quarter, against the $5 billion median forecast of economists.

The annual deficit of New Zealand's dealings with the rest of the world came to $14.42 billion against consensus of economists' forecasts of $15 billion.

he current account, also known as the balance of payments, measures all of New Zealand's transactions with the outside world.

The annual deficit equated to 9.1% of GDP, an improvement on the $15.14 billion, or 9.7% of GDP, recorded in the June year.

It was the first time since March 2003 that the year-end deficit had narrowed between quarters, Statistics NZ said.

The seasonally adjusted current account deficit for the September quarter was $3.11b, $418 million lower than the June quarter deficit.

The reduced deficit was mainly due to an improvement in the investment income deficit, SNZ said.

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