Stats NZ has a new website.

For new releases go to

www.stats.govt.nz

As we transition to our new site, you'll still find some Stats NZ information here on this archive site.

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+
Lower profits earned by foreign investors in New Zealand
Embargoed until 10:45am  –  15 June 2016

Balance of Payments and International Investment Position: March 2016 quarter  –  Media Release

Foreign investors returns from New Zealand fell more than half a billion dollars in the March 2016 quarter, Statistics New Zealand said today. This helped narrow the current account deficit to just under $1.5 billion for the three months.

New Zealand’s seasonally adjusted current account deficit fell $665 million in the March 2016 quarter to a deficit of $1,495 million. The reduced deficit can be attributed to a fall in income earned from foreign investment in New Zealand and an increase in the goods and services surplus. The latest quarter’s seasonally adjusted current account deficit is the smallest since the March 2014 quarter.

New Zealand’s primary income deficit decreased $562 million to $1,726 million in the March 2016 quarter. Less income earned from foreign investment in New Zealand was the main driver for this movement, with falls in both direct and portfolio investment income.

“Generally, foreign-owned New Zealand companies earned lower profits this quarter,” international statistics manager Stuart Jones said. “This meant there was a decrease in investment income paid to foreign investors.” 

Higher spending by foreign tourists also saw the services surplus in the March 2016 quarter hit a record high, topping $1.0 billion for the first time since the June 2004 quarter. The services surplus increased $166 million, to $1,139 million, driven by a $91 million increase in travel service exports.

International trade fell in the latest quarter, with goods imports down $506 million and exports down $259 million. Goods imports decreasing more than exports resulted in a smaller goods deficit.

The annual current account deficit was $7.5 billion (3.0 percent of GDP) for the year ended March 2016, compared with a deficit of $8.0 billion (3.2 percent of GDP) for the year ended December 2015. The smaller annual deficit was largely due to an increase in the services surplus and a decrease in the primary income deficit. The current account deficit has ranged between 2.4 and 3.4 percent of GDP over the last two years; the series peak  (7.8 percent) occurred in 2008.

New Zealand’s net liability position, which measures the value of our overseas assets less our overseas liabilities, was $157.0 billion (63.1 percent of GDP) at 31 March 2016, the highest liability position since March 2009. The increase this quarter was mainly due to higher prices in the New Zealand sharemarket increasing the value of our overseas-owned shares. The New Zealand dollar depreciating against some of our major trading partners also contributed to the value of our liabilities increasing more than the value of our assets. 

The balance of payments statements set out a country's transactions with the rest of the world. 

Ends

For media enquiries contact: Nicola Growden, Wellington 04 931 4771, info@stats.govt.nz
Authorised by Carol Slappendel, Acting Government Statistician, 15 June 2016

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+
Top
  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+