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Michael Gordon, Senior Economist at Westpac, notes that the New Zealand’s current account deficit widened from 2.7% to 2.8% of GDP in the year to March.

Key Quotes

“While this was the largest deficit in two years, it remains low relative to history. The result was in line with expectations, and has no implications for our other economic forecasts.”

“Goods exports fell sharply in the March quarter, though we think this is due to temporary factors. Imports, particularly of business equipment, have remained strong to  date.”

“Investment income earned in New Zealand by foreigners was down in the March quarter, reversing a steep rise in the previous two  quarters.”

“New Zealand’s external imbalances continue to improve as the current account deficit remains low relative to history.”