22 Dec 2010

Current-account deficit gap narrowest in seven years

6:45 pm on 22 December 2010

The gap between what the country earns overseas and what it pays out is the narrowest in more than seven years.

Cash flowing into the country as a result of payments from foreign reinsurers to local insurance companies after the Canterbury earthquake helped lower the current-account deficit.

The deficit fell to 3.1% of gross domestic product in the year to the end of September.

Excluding the cash inflows from reinsurers, and payments from Australian banks for tax settlements, the annual deficit was equal to 3.8% of GDP.

In the year to September 2009 it was 4.3%.