New Zealand's annual current account deficit $18.7 billion

Wellington: New Zealand's annual current account deficit was recorded at NZ$30.6 billion ($18.7 billion), 7.6 per cent of gross domestic product (GDP), in the year ended September 30, 2023, according to the statistics department Stats NZ on Wednesday.

The figure was compared to the NZ$31.1 billion deficit reported in the year ended September 30, 2022 when the deficit was 8.3 per cent of GDP, reports Xinhua news agency.

The narrowing annual current account deficit in the year ended September 30, 2023 was due to a NZ$4.1 billion narrowing of the services deficit, offset by a NZ$2.5 billion widening of the goods deficit and a NZ$1.4 billion widening of the primary income deficit, it said.

Services exports drove the narrowing services deficit, and overseas visitor arrivals had continued to rise since the easing of border restrictions, Stats NZ said.

"More overseas visitors to New Zealand in the year ended September 2023 meant an increase in tourism spending, but levels are still below what they were before COVID-19," said Jason Attewell, Stats NZ general manager of economic and environment insights.

"While not as large, spending by New Zealanders on overseas travel has returned to previous levels," Attewell said.

Goods imports contributed to the widening goods deficit, with non-crude fuel imports including diesel, jet fuel, and petrol increasing by 52 per cent, he said.

Meat exports, largely sheep meat and beef, decreased by 12 per cent, which was partly offset by a 3 per cent increase in dairy exports, statistics show.