NZ’s current account deficit reaches $7.2b in Q2

New Zealand’s seasonally adjusted current account deficit widened by $269 million to reach $7.2 billion in the June 2024 quarter, according to latest data released by Stats NZ on Wednesday.

The main driver of the widening deficit was a $291 million increase in the primary income deficit, which reached $3.8 billion in the June quarter.

While overseas earnings of New Zealand investors grew by $36 million, earnings of overseas investors in New Zealand surged by $263 million.

The seasonally adjusted goods deficit also widened by $110 million to $2.6 billion in the June quarter. This was driven by a $183 million increase in goods imports, particularly transport equipment like aircraft and parts.

However, goods exports also grew by $74 million, led by meat and other commodities like aluminium, wine, and fish. Notably, exports of logs, wood products, and dairy products decreased during this period.

The services deficit decreased by $28 million to $501 million in the June quarter, thanks to a $127 million boost in services exports, driven by transportation services. However, services imports also rose by $99 million, primarily due to higher spending by New Zealanders traveling abroad.

Attribution: Stats NZ report

Subediting: M. S. Salama