NZ: Current account deficit widens to NZ$8.1b at 3.1% of GDP - TDS

New Zealand’s Q1 current account balance showed a smaller surplus than market expected at NZ$0.244b (mkt NZ$1b) and on an annual basis, current account deficit widens to NZ$8.1b at 3.1% of GDP, from NZ$7.2b at 2.8% of GDP in Q4, explains the research team at TDS.

Key Quotes

“The smaller Q1 surplus was attributed to the lower goods and services surplus given higher imports. REINZ house sales dipped –18.4%/y from a –31.0%/y last month in April. Also food prices rose 2.4% in May. While weather may have driven these moves, it does suggest upside risk for Q2 CPI, nudging close to 2%.”