WELLINGTON, June 18 (Xinhua) -- New Zealand's current account deficit narrowed to 5.5 billion NZ dollars in the March quarter, as strong exports of fruit, dairy, and meat were partly offset by increased imports of goods and services.
The goods trade deficit improved significantly, dropping to 0.6 billion NZ dollars from 1.7 billion NZ dollars, though the services balance turned negative due to lower overseas visitor spending and higher imports of transport services, Stats NZ said on Wednesday.
A net financial inflow of 4.2 billion NZ dollars supported the current account shortfall, while foreign investors continued to earn more from New Zealand than Kiwi investors did abroad, the statistics department said.
The country's net international investment liability improved slightly, and foreign reserve assets surged by 18.2 billion NZ dollars year-on-year, largely due to the purchase of foreign currency assets by the Reserve Bank, it said.
For the year to March 2025, the annual current account deficit fell to 24.7 billion NZ dollars, or 5.7 percent of gross domestic product (GDP), down from 26.2 billion NZ dollars, or 6.1 percent of GDP at the end of 2024, Stats NZ said.
New Zealand remains reliant on foreign capital to balance its international transactions in a volatile global environment, which underscores the country's vulnerability to global economic shifts, experts said. (1 NZ dollar equals 0.60 U.S. dollar) ■
