Drop in current account deficit due to lower oil prices
The country's present account deficit for the year to 31 March suffered a fall due to dropping import costs, mainly because of lower oil prices.
This morning, Statistics New Zealand announced that the deficit plunged from 9% of GDP to 8.5% or from $3.72 billion to $2.68 billion.
It should be noted that this is quite as per high both international and historical New Zealand standards. As of now the annual deficit is below $3 billion for the first time since March 2005.
Furthermore, for the first time since December 2003, the goods and services balance is now in surplus by $863 million.
The recession has also led to fewer imports apart from the lower oil prices.
As of now, investment income is well into deficit and it is now $3.272 billion for the year, growing $35 million over the quarter.
A drop in income from New Zealand investment abroad is the main reason, which plunged $192 million, partially offset by a fall in investment income from foreign investment in New Zealand, which fell $158 million.
It was concluded by the figures that New Zealand is still a debtor nation - the country's liabilities exceed assets by $176.6 billion or 98.2% of GDP.
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