NZ: Q2 annual current account deficit to remain around 3.1% of GDP - Westpac

Analysts at Westpac expect the NZ’s annual current account deficit to remain around 3.1% of GDP.

Key Quotes

“In seasonally adjusted terms, last quarter’s deterioration in the goods balance is set to reverse, with the goods deficit expected to narrow from $1bn to $400m. Underpinning this recovery has been a lift in dairy exports volumes and prices following weakness in the previous two quarters.”

“The services balance is expected to continue rising from already firm levels. This mainly reflects ongoing strong growth in tourism exports, with a record inflow of international visitors over the past year. Tourism exports are likely to be particularly strong in the June quarter as a result of the boosts to spending from the Masters Games and Lions tour.”

“The investment income deficit is expected to remain stable.”