Current account deficit narrows

While the annual current account deficit widened, New Zealand's seasonally adjusted current account deficit reduced to $2.7 billion for the June 2018 quarter, according to Stats NZ's latest figures. 

The current account balance records the value of New Zealand’s transactions with the rest of the world in goods, services, and income.

A current account deficit exists when we spend more than we earn from our transactions with the rest of the world.

The $484 million decrease from the March 2018 quarter was mainly driven by rising exports of goods and services.

Imports of vehicles contribute to an increase in NZ's goods imports

Imports of vehicles, machinery and equipment drove a $379m increase in our goods imports, to reach $15.6b in the June 2018 quarter.

New Zealand exported $14.2b of goods in the latest quarter; an increase of $711m on the March 2018 quarter - this rise was predominantly influenced by exporting more dairy products.

This resulted in a $1.4b goods deficit in the June 2018 quarter, $332m smaller than the March 2018 quarter deficit.