20 Sep 2017

Balance of payments deficit shrinks in second quarter

12:18 pm on 20 September 2017

The tourism boom and recovery in dairy exports has helped to narrow New Zealand's balance of payments deficit.

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Photo: 123rf

Official figures show a deficit of $618 million for the three months ended June, shrinking the annual deficit to just under $7.5 billion.

The data broadly shows the country's ability to pay its way.

A strong surplus in exports and earnings from record numbers of tourists were overshadowed by it continuing to borrow more than it earned.

The country's net liability position, which measures New Zealanders' indebtedness to the rest of the world, also narrowed slightly.

The overall deficit was equivalent to 2.8 percent of the value of the economy, the lowest in nearly a year.