New Zealand’s current account deficit remains stubbornly wide, suggesting Kiwis continue to live beyond their means.
The country spent $30.6 billion more on imports than it earned from exports in the year to September.
This was equivalent to 7.6% of gross domestic product (GDP), according to Stats NZ.
Since late 2022, all eyes have been on how quickly that deficit narrows to a more sustainable level. The fear has been that if it doesn’t track downward, New Zealand’s very strong credit rating could be downgraded, which could make borrowing more expensive.
While a deficit of 7.6% of GDP is an improvement from the 8.3% figure recorded in the year to September 2022, it’s still a long way off the 3% level it used to hover around.
The good news is that in the year to September, services exports increased by 168% compared to the previous year. Tourism rebounded strongly.
But meat exports fell by 12%, although dairy exports increased by 3%
The largest contributor to the goods deficit widening was the increase in non-crude fuel imports including diesel, jet fuel and petrol. Read more
