Michael Gordon, senior economist at Westpac, notes that the New Zealand’s current account deficit widened from 3.6% to 3.7% of GDP in the year to December, a smaller increase than Westpac expected.
Key Quotes
“The balance of goods trade moved further into deficit, offset by higher tourism earnings and solid investment income inflows.”
“The deficit has widened over the last year due to a decline in the terms of trade and, until recently, high import volumes.”
“With trade prices turning more favourable in recent months, we expect the current account deficit to narrow again over 2019.”
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