According to self-published statistics from StatsNZ, the New Zealand’s seasonally adjusted current account deficit rose by almost $400 million to $7.4 billion, in the third quarter ended in September. However, the annualized current account until September experienced a contraction, standing at 30.6 billion annualized dollars, that is, 7.6% of the Gross Domestic Product (GDP), compared to 8.3% of GDP for the year ending in September 2022.
According to StatsNZ, the quarterly current account widening was only partly offset by a $579 million reduction in the services deficit, compared to a $633 million widening in the goods deficit and a further $292 million widening in dollars of the primary income deficit.
Market reaction
The NZD/USD pair remains stable in the early stages of Wednesday’s session in Asian markets, trading just above 0.6130.
About Stats NZ Current Account
The current account published by Statistics New Zealand is a net flow of current transactions, including goods, services and interest payments entering and leaving New Zealand. A current account surplus indicates that the flow of capital into New Zealand exceeds the reduction in capital. Typically, a high reading is considered positive (or bullish) for the NZD, while a low reading is considered negative (or bearish).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
