Home NZ BoP: Stronger in the quarter, weaker in the year – ANZ
FXStreet News

NZ BoP: Stronger in the quarter, weaker in the year – ANZ

Analysts at ANZ note that the New Zealand’s Q2 unadjusted quarterly current account balance switched from surplus to deficit (from a downwardly-revised $0.1bn in Q1 to -$1.6bn), owing entirely to a narrowing services surplus on the back of the tourism-season wind down.

Key Quotes

“The mix of a wider quarterly deficit than we had expected and revisions to previous quarters saw the annual deficit land at $9.5bn (3.3% of GDP) – around $1bn wider than we had pencilled in. Overall, the annual deficit remains below its historical average of 3.6% of GDP.”

“In seasonally adjusted terms, the quarterly current account deficit narrowed by $0.5bn to $2.7bn. As expected, this was driven by a widening services surplus ($0.1bn to $1.5bn) and narrowing goods deficit ($0.3bn to -$1.4bn).”

“New Zealand’s net international liability position (NILP) widened $1.6bn to $157.9bn.”

“There are no obvious implications from today’s data for tomorrow’s real GDP figures. We expect to see a 0.7% q/q expansion in production GDP. The drag from net exports to real expenditure GDP is expected to shrink as export volumes pick up from Q1.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.