NZ’s annual current account deficit expands to $11.2 billion

Highlights

  • Annual current account deficit widened by $6.5 billion to $11.2 billion for the year to June 2021.
  • Seasonally adjusted CAD narrowed to $3 billion in the June quarter due to a rise in the value of exports.

Latest figures from Stats NZ revealed that the annual current account deficit (CAD) stood at $11.2 billion for the year ended June 2021. The figure was $6.5 billion more than for the year to June 2020, primarily driven by the shift from a services surplus to a services deficit.

Current account deficit refers to the shortfall that occurs when the amount of money that goes out due to imports is more than the amount of money that come in due to exports.

Source: © Maxsomma| Megapixl.com

In seasonally adjusted terms, CAD narrowed to $3 billion in the June quarter due to a rise in the value of exports. CAD number was $2.2 billion narrower than the quarter before due to an increase of $1.4 billion in goods exports and $1.7 billion in services exports.

ALSO READ: New Zealand’s current account deficit in all-time poorest shape

Goods exports stood at $16 billion in the quarter while goods imports came in at $16.4 billion in seasonally adjusted terms.

As at 30 June 2021, the value of NZ’s international assets rose by $33 billion contrasted with 30 June 2020, even after the COVID-19 disruptions.

Bottom Line

It is ye to be seen how CAD turns out to be for the next quarter.

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