New Zealand Q4 2024 Current account deficit larger than expected

March 18, 2025 at 09:53PM

New Zealand Q4 current account deficit data, NZD/USD not showing much response.

Quarterly deficit was NZ$7.037 bn

deficit of NZ$10.839 billion in the previous quarter

Stats NZ say the deficit is narrower than the previous quarter due to an increase in the value of services exports (up $688 million) and goods exports (up $669 million)

Seasonally adjusted quarterly deficit was NZ$5.91 bn

prior NZ$6.385 bn

the seasonally adjusted services balance was a $41 million surplus, compared with a deficit of $424 million in the September 2024 quarter

seasonally adjusted goods deficit narrowed to $1.7 billion in the December 2024 quarter, following a deficit of $1.8 billion in the September 2024 quarter.

Annual deficit to December was NZ$26.401 bn, which is 6.2% of gross domestic product:

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More on the “current account”

refers to a component of a country’s balance of payments that measures the flow of goods, services, investment income, and unilateral transfers (such as remittances and foreign aid) between the country and the rest of the world.

The current account is divided into several categories:

Trade Balance: The value of exported goods minus the value of imported goods.

Net Exports/Imports of Services: Such as tourism, software services, etc.

Net Investment Income: Includes income from assets held overseas, such as dividends and interest, minus similar payments made to foreign investors who own assets in the country.

Unilateral Transfers: Transfers that don’t involve a quid pro quo, such as remittances, foreign aid, grants, etc.

A positive current account balance indicates that a country is exporting more than it is importing, effectively lending to the rest of the world. Conversely, a negative current account balance means that a country is importing more than it is exporting and is thus borrowing from other countries. The current account, together with the capital and financial accounts, make up a country’s balance of payments, providing a comprehensive view of a country’s economic transactions with the rest of the world.

This article was written by Eamonn Sheridan at www.forexlive.com.