Michael Gordon, analyst at Westpac, notes that New Zealand’s current account deficit was unchanged in the September quarter, broadly in line with expectations.
Key Quotes
“New Zealand’s annual current account deficit was 3.3% of GDP in the September quarter, unchanged from the June quarter (which was revised from 3.4%). The result was close to forecasts, and there was no market reaction.”
“The revision to the previous quarter was due to an upward revision to the level of nominal GDP over the last couple of years, which Stats NZ had signalled as part of its annual benchmarking exercise.”
“Tomorrow’s GDP report will incorporate revisions to real GDP, though we don’t expect these to be large – the details provided by Stats suggest that much of the increase in nominal GDP was due to higher prices rather than stronger activity.”
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