Tourism spurs services surplus to a record $1.3 billion

Tourism spurs services surplus to a record $1.3 billion

Tourism spurs services surplus to a record $1.3
billion

20 September 2017 – New
Zealand’s current account deficit narrowed to $1.6 billion
in the June 2017 quarter, Stats NZ said today. This smaller
deficit was due to a record high $1.3 billion services
surplus and a smaller primary income
deficit.

Record-high services trade

New
Zealand exported a record $5.8 billion worth of services in
the June quarter, seasonally adjusted, while importing a
record $4.5 billion worth of services.

The increase in
services exports was driven by $3.7 billion worth of
spending by overseas travellers in New Zealand (exports of
travel services). This is the largest-ever seasonally
adjusted export of travel services. Part of this increase
was due to the World Masters Games in April, and the British
and Irish Lions Rugby tour to New Zealand in the June and
September quarters.

Overall, the seasonally adjusted goods
and services balance for New Zealand in the June 2017
quarter was a surplus of $834 million.

New Zealand had a
seasonally adjusted goods deficit of $446 million this
quarter. This is smaller than the March 2017 quarter deficit
of $1.1 billion due to stronger goods exports in the latest
quarter.

Current account remains in
deficit

The seasonally adjusted current account
balance was a deficit of $1.6 billion for the June 2017
quarter.

New Zealand’s goods and services balance was a
surplus (we exported more than we imported), but the deficit
in the primary and secondary income balance means the
overall current account balance is a deficit.

New
Zealand’s primary income deficit was $1.9 billion in the
June 2017 quarter, $403 million smaller than the March
quarter.

“Foreign investors in New Zealand earned less
income compared to last quarter, while New Zealand
investments overseas earned more,” international
statistics senior manager Daria Kwon said.

The smaller
primary income deficit in the June quarter was largely
caused by a $295 million increase in investment income from
New Zealand investment abroad (inflow) and a $73 million
decrease in income earned by foreign investment in New
Zealand (outflow).

New Zealand’s secondary income
deficit increased $188 million to reach $522 million in the
June 2017 quarter. The increase in this deficit was caused
mainly by large payments of general government current
transfers such as foreign aid. Our outflows of secondary
income were $1.0 billion in this quarter, twice our inflows
of secondary income ($500 million).

For
an overview of movements in the June 2017 quarter, see the
overview diagram in the ‘Downloads’
box.

ENDS

© Scoop Media