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Analysts at ANZ are expecting the seasonally adjusted deficit of New Zealand economy to narrow around $0.4bn from Q2, driven by a narrowing goods deficit as growth in exports outpaces that of imports.

Key Quotes

“The 0.3% fall in the Q3 OTI terms of trade suggests this will be entirely volume driven. The services surplus is expected to narrow a touch as seasonally adjusted exports partially retrace some of Q2’s strength and imports lift.”

“The income deficit is expected to widen, with primary income outflows lifting on the back of growing international debt and equity liabilities. The annual current account deficit is expected to widen 0.3%pts of GDP to 3.6%, owing to base effects.”