Falling agricultural exports add to New Zealand current account deficit

Falling agricultural exports added to New Zealand's current account deficit in the quarter ending September, the government statistics agency said Thursday.

The current account deficit rose to 1.9 billion NZ dollars (1.31 billion U.S. dollars) in the September quarter, up from 1.8 billion NZ dollars (1.24 billion U.S. dollars) in the June quarter, according to Statistics New Zealand.

New Zealand's export goods were worth 686 million NZ dollars (473.68 million U.S. dollars) less than import goods in the September quarter, with the goods trade shortfall up 190 million NZ dollars (131.19 million U.S. dollars) from the June quarter.

"New Zealand spent more on imports of goods, and earned less from exports of goods this quarter," international statistics senior manager Jason Attewell said in a statement.

Meat, New Zealand's second largest export commodity, led the fall in export goods, down 235 million NZ dollars (162.26 million U.S. dollars) and falls in fruit exports added to the overall drop.

Other contributions to the larger current account deficit were New Zealand's offshore investments earning less income, and foreign tourists spending less in New Zealand.

New Zealand's annual current account deficit was 7.5 billion NZ dollars (5.18 billion U.S. dollars), or 2.9 percent of GDP for the year ended September, down from 3.5 percent of GDP year on year.

New Zealand's financial account had a net inflow of 5.3 billion NZ dollars (3.66 billion U.S. dollars) in the September quarter.

"When New Zealand spends more on imports than we earn from exports, this extra spending needs to be funded from external sources," Attewell said.

"Much of this inflow was due to foreign-owned banks increasing their long-term borrowings."

New Zealand's net international liability position was 166.2 billion NZ dollars (114.76 billion U.S. dollars), or 64.9 percent of GDP, at the end of September. Endit