New Zealand’s Q1 2017 current account deficit highest since December 2008 on record imports

New Zealand recorded current account deficit in the first three months of 2017, the highest since December 2008. Record imports contributed to the largest quarterly current account deficit since December 2008, said Statistics New Zealand.

The seasonally adjusted current account deficit came in at NZD 2.8 billion, $ 1.1 billion wider than the December 2016 quarter deficit. For the year ended March 2017, the nation’s annual current account deficit came in at $8.1 billion (3.1 percent of GDP).

The goods deficit broadened by NZD 404 million to reach $ 1.2 billion for the March 2017 quarter, the biggest goods deficit since June 2008 quarter.

"New Zealanders spent more on imports of goods this quarter than we earned from our exports of goods. The increased spending on goods, like cars and machinery, led to a record high value of imports this quarter", said international statistics senior manager Daria Kwon.