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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 current account deficit narrowed in Q1 to $5.215bn from $10.065bn in Q4. This brought the YTD deficit as a percent of GDP down to 8.5% from 9%, which is significantly higher than 6.8% in Q1 2022 and remains very high by OECD standards. It is now moving in the right direction though and should reassure ratings agencies.
- The current account deficit improvement over the quarter was due to narrower goods and services deficits.
- The widening of the current account deficit over the last year has been due to goods trade and primary income deficits. Good imports rose 18.4% y/y, driven by petrol (including higher prices), machinery & equipment. Good exports rose 10.7% y/y, driven by dairy.
- There was also a widening of the Q1 services deficit of $0.48bn with imports rising 40.3% y/y and exports 56.6%.
- The Q1 capital account saw an inflow of $2.3bn. Statistics NZ noted that it was “mainly made up of claims by New Zealand insurers on overseas reinsurers, following the larger than usual claims that have arisen from the Auckland flooding and Cyclone Gabrielle”.
NZ current account YTD % GDP
Source: MNI - Market News/Refinitiv
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.
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