MNI: New Zealand Current Acct Deficit Narrows Slightly in Q3

-Current Account Deficit at 2.6% of GDP Year to September

     SYDNEY (MNI) - From balance-of-payments data for the third quarter released

by Statistics New Zealand on Wednesday:

                                             Q3            Q2

-------------------------------------------------------------

Current Account Balance (SA)       -NZ$1.31 Bln  -NZ$1.49 Bln

Current Account Balance (nominal)  -NZD4.68 Bln   -NZD514 Mln

Annual Deficit, % of GDP                   2.6%          2.8%

MNI Median Deficit                         2.5%

Annual Current Acct Balance            -7.1 Bln      -7.4 Bln

     FACTORS: New Zealand's current account deficit in seasonally adjusted terms

narrowed slightly in the third quarter due to fall in goods deficit which was

NZ$411 million smaller than Q2. Services surplus narrowed just NZ$91 million

versus Q2 as exports of travel services showed no change from the Q2 - in both

quarters international visitors to New Zealand spent NZ$3.7 billion. The World

Masters Games in the June quarter and the final two British and Irish Lions

rugby matches in the September quarter increased the number of visitors to New

Zealand, which contributed to higher travel exports in both quarters. Imports of

travel services (spending by New Zealanders travelling overseas) remained steady

at around NZ$1.6 billion in Q3.

     New Zealand's primary income deficit was NZ$2.4 billion in Q3, NZ$312

million larger than Q2 due to a NZ$359 million decrease in income earned from

New Zealand investment abroad, and a smaller decrease in income earned by

foreign investors in New Zealand.

     In actual terms, the goods balance slipped into deficit in Q3 from a

surplus in Q2 and was the main reason for current account balance to slip to a

big deficit of NZ$4.68 billion from NZ$514 million.  The current account deficit

for the year to September, however, still improved to 2.6% of GDP from 2.8% of

GDP.  

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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