Exports Up—Deficit Higher

Press, Volume CIV, Issue 30739, 1 May 1965, Page 3

Exports Up —Deficit Higher

(N.Z. Press Association) WELLINGTON, April 30.

New Zealand’s overseas exchange transactions were at an over-all deficit of £6.1 million for the year ended March 31 last, says the Reserve Bank.

The deficit compares with a deficit of £5.4 million for the year 1963-64. The deficit of £12.2 million on current account was £4.4

million higher than for the year ended March, 1964. While the credit balance on trade transactions increased by £4.4 million to £55.8 million, the “invisible” deficit, continuing its upward trend rose by £B.B million to £68.0 million.

Total export receipts were £384.3 million, £19.1 million higher than in the previous year. There were increases in butter (£900,000), cheese (£700,000), meat (£17.8 million) and other exports (£13.8 million). Receipts for most of the commodity groups under the heading of other exports increased, the main items being sheepskins and pelts (£3 million), casein (£3.8 million), fruit and honey (£1.6 million), and miscellaneous manufactured goods (£1 million).

As a result of lower prices, wool receipts decreased by £l4 million. The average price for greasy wool sold at auction in New Zealand this season up to March 31 was

43d a pound compared with 53.6 d a pound for the first nine months of the 1963-64 season.

Private import payments for the year ended March. 1965, were £9.4 million higher than for the same period in 1963-64.

Payments for Government imports increased during the year by £5.3 million to £32.6 million.

There was an increase of £4.2 million to £39:2 million in “other” current receipts. Private “invisible” payments rose by £12.6 million, the most significant increases being in transport (£3 million), travel (£2.5 million), investment income (£3.3 million), and emigrants transfers (£1.7 million). Government “invisible” payments at £19.6 million were £300,000 higher. Capital account transactions during the period resulted in a net inflow of £6.1 million (Government £3.6 million, private £2.5 million) compared with £2.5 million in the year ended March, 1964.