Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NEW ZEALAND
The Q4 current account deficit came in larger than expected at $9.46bn but narrower than Q3’s upwardly revised $11.4bn deficit. But seasonally adjusted it widened to $8.5bn from $7.1bn. The year to date deficit was 8.9% of GDP up from 8.5% (revised from 7.9%), the highest since the series began in 1988 and 2.9pp wider than Q4 2022.
- While NZ is unlikely to face problems financing its large current account deficit, renewed concerns around a global recession this year could leave NZD more sensitive to external developments compared to other currencies, where current account balances are in a healthier position. According to the IMF NZ and Cyprus had the largest current account deficits in the OECD in 2022.
- The widening of the NZ deficit was due to a $10bn increase in the trade deficit and +$2.7bn in the income deficit.
- Imports of goods and services rose 25.8% y/y, driven by travel, transport, petrol and machinery. Exports increased 16.8% y/y with dairy, meat and tourism the main contributors.
NZ current account % GDP
Source: MNI - Market News/Refinitiv
OECD 2022 current accounts % GDP
Source: MNI - Market News/IMF *NZ is today's Q4 YTD data, others are IMF 2022 estimates
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok