Statistics NZ said yesterday a record high $1.3 billion services surplus and a smaller primary income deficit narrowed New Zealand’s current account deficit to $1.6 billion in the June quarter.
More economic statistics are due out this morning: the GDP figures and the monthly migration figures.
Statistics NZ said New Zealand exported a record $5.8 billion of services in the June quarter, seasonally adjusted, while importing a record $4.5 billion of services.
The increase in services exports was driven by $3.7 billion of spending by overseas travellers in New Zealand (exports of travel services): “This is the largest ever seasonally adjusted export of travel services. Part of this increase was due to the World Masters Games in April, and the British & Irish Lions Rugby tour to New Zealand in the June & September quarters.”
Overall, the seasonally adjusted goods & services balance in the June quarter was an $834 million surplus.
Stronger goods exports reduced the seasonally adjusted goods deficit for the quarter to $446 million, down from $1.1 million in the March quarter.
- For the year ended June 2017, New Zealand’s current account deficit was $7.5 billion (2.8% of gdp; it was 2.7% of gdp for the June 2016 year)
- The seasonally adjusted current account balance was a $1.598 billion deficit in the June quarter ($1.187 billion smaller than the March 2017 quarter’s deficit)
- The goods deficit decreased $677 million to reach $446 million
- The services surplus increased $295 million to reach $1.280 billion, the highest on record
- New Zealand’s primary income deficit decreased to $1.910 million in the June quarter, $403 million smaller than in the March 2017 quarter
- New Zealand’s secondary income deficit increased to $522 million in the June quarter, $188 million larger than the March 2017 quarter deficit
- The capital account balance was a deficit of $14 million for the June quarter, down from the surplus of $3 million in the March quarter
- The financial account net inflow was $110 million for the June quarter, an increase from the revised financial account net outflow of $787 million for the March quarter
- New Zealand’s net international liability position was $154.2 billion (57.5% of gdp) at 30 June, up from a revised $153.0 billion at 31 March but down slightly as a percentage of gdp (57.8%)
- New Zealand’s net external debt position was $145.5 billion (54.3% of gdp) at 30 June, up from a revised net external debt position of $144.4 billion (54.6% of gdp) at 31 March
- The outstanding reinsurance balance for the Canterbury earthquakes is $1.3 billion while the outstanding balance for the Kaikoura earthquakes is $991 million. Revisions to recognised reinsurance claims for the Canterbury & Kaikoura earthquakes are reported in the quarter when the earthquakes occurred.
Attribution: Statistics NZ release.