New Zealand recorded a seasonally adjusted current account deficit of NZ$3.8 billion in the June quarter, narrowing by NZ$666 million from the previous quarter, according to data released Wednesday by Stats NZ.
The result was driven by a NZ$712 million narrowing in the primary income deficit to NZ$2.3 billion, representing the difference between the income New Zealand earns from its overseas investments and the outflow of income from foreign investment in the country.
The seasonally adjusted goods deficit was NZ$1.5 billion in the June quarter, following a deficit of NZ$1.1 billion in the March quarter. Goods imports increased by NZ$1.8 billion, or 8.2%, to NZ$24.1 billion, with higher prices for diesel, petrol, and jet fuel contributing to the increase in the value of petroleum imports.
Meanwhile, the seasonally adjusted services balance shifted to a surplus of NZ$183 million, compared with a deficit of NZ$117 million in the March quarter, as services exports increased by NZ$193 million to NZ$9.4 billion and services imports fell by NZ$107 million to NZ$9.2 billion, the data showed.
The country's annual current account deficit hit NZ$14.6 billion, or 3.2% of gross domestic product, in the year ended June 30. That compares with a NZ$13.7 billion deficit, or 3% of GDP, in the year ended March 31, and a NZ$15.8 billion deficit, or 3.6% of GDP, in the year ended June 2025.