NZ’s net intl. investment liability position widens in Q2

New Zealand’s net international investment liability position continued to widen in the June 2024 quarter, reflecting a larger increase in international liabilities compared to assets, as per figures published by Stats NZ on Wednesday.

As of June 30, 2024, New Zealand’s international assets totalled $386.5 billion, a $452 million increase from the previous quarter. However, international liabilities surged by $6.6 billion to $591.8 billion during the same period.

This resulted in a net international investment liability position of $205.3 billion (49.7 per cent of GDP), $6.2 billion wider than the position at March 31, 2024, the statement showed.

The increase in New Zealand’s international assets in the June 2024 quarter was primarily driven by a $4.1 billion net outflow from financial account assets transactions.

Additionally, exchange rate changes contributed to a $2.9 billion decrease, while financial derivative valuation changes added $100 million. Market price changes had a negative impact, resulting in a $1.4 billion decrease, while other valuation changes contributed $574 million.

On the other hand, the surge in international liabilities was primarily due to a $7.9 billion net inflow from financial account liabilities transactions.

Exchange rate changes, financial derivative valuation changes, and market price changes also had a negative impact, contributing to decreases of $1.8 billion, $1.5 billion, and $908 million, respectively.

Attribution: Stats NZ report

Subediting: M. S. Salama