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.
