Record Deficit In Payments Balance

Press, Volume C, Issue 29623, 20 September 1961, Page 21

Record Deficit In Payments Balance

After five years of continuous balance-of-payments deficits New Zealand had a surplus of nearly £36m in 1959-450 —the highest surplus on current account ever achieved.

But in the year to March. 1961. the deficit reached the record level of £ 55.6 m. the Government Statistician (Mr J. V. T. Baker) said in a statement.

The main cause of the fluctuation was to be found in the merchandise account, he said. Total exports declined from £ 310.6 m to £ 255.0 m, and total imports increased from £ 218.2 m to £272.6m. -i z Because of the considerable increase in the volumes of imported commodities, payments on account of transportation (largely import freight and marine insurance), increased from £27.1m to £32.4m. This w f as not the total freight bill, however, because freights paid to resident shipping operators carrying exports were excluded. Travel The cost of private and business overseas travel, excluding fares paid in New Zealand, advanced from £9.7m to £ 14.0 m.

The cost of servicing overseas capital in the form of

profits of overseas companies. investments in New Zealand by individuals, and interest on Government and local authority loans increased from £ 19.7 m to £ 24.5 m.

During the period the biggest absolute and relative decline in exports was with Britain from £169.8ni to £ 149.5 m, a fall of 12 per cent. Exports to the European Common Market area declined by 8.6 per cent, (from £49Bm to £ 45.5 m). to the dollar area by 5.3 per cent, (from £ 48.7 m to £ 46.1 m >. and a small decrease was also recorded with the group of “other” countries. Imports Rise

New Zealand's imports from all areas were substantially above the previous year's figure. From Britain 20 9 per cent, more was im» ported, equivalent to an increase in value from £ 103.5 m to £125.1m. The merchandise bill with o'her sterling countries increased from £58.1m to £69.2m. a rise of 19.2 per cent., and the E.E.C. area total rose by 28 8 per cent, to £ 20.6 m. The largest relative increase was in the dollar area, where imports increased by 58.7 per cent., from £ 24.2 m to £3B 4m.