The New Zealand Balance of Payments Current Account for Q4 data is here from earlier
- The current account deficit narrowed in the fourth quarter of last year
- Part of the boost came from a larger services balance surplus ... services balance was a surplus of $1.1 billion (vs, revised deficit of $73 million in the previous quarter)
- Exports were $5.4 billion (vs. 4.5 billion in the September quarter)
- Tourism continues to boom in New Zealand ... number of tourists to NZ increased in Q4, as did the average amount each tourist spent
- The deficit in the goods balance fell to $1.5 billion (vs. revised $2.6 billion deficit Q3)
- Goods exports rose to $12.2 billion ($10.8 billion in the prior quarter)
- Imports higher at $13.7 billion ($13.4 billion prior)
- Financial account balance a deficit of $3.3 billion (vs. revised surplus of $5.7 billion prior) ... in Q4 there was a net outflow of investment; banks increased their investment assets held overseas - currency and deposits - and financed it with additional funds sources from within New Zealand, rather than by raising funds from overseas
- Balance on the capital account was a $683 million surplus (deficit of $11 million prior) ... due to a provisional $694 million of reinsurance claims from the November 14 Kaikoura earthquakes
New Zealand's net international liability position:
- $156.5 billion or 59.9 percent of GDP at December 31 (vs. revised $166.1 billion or 64.8 percent of GDP at September 30)
- The lowest international liability position to GDP ratio recorded
And, a key focus for the ratings agencies ...
Net external debt position (excluding financial derivatives and equity) was $143.5 billion
- or 55 percent of GDP at December 31
- That's down from $149.1 billion or 58.2 percent of GDP on September 30 2016
- (this is basically the difference between overseas lending and borrowing)
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Update to the NZD/USD ... apparently this thing is on ...
