SURPLUS IN JANUARY TO JULY ACCOUNTS $68.6m

Press, Volume CVIII, Issue 31768, 27 August 1968, Page 28

SURPLUS IN JANUARY TO JULY ACCOUNTS $68.6m

(New Zealand Press Association)

WELLINGTON, August 26. During the first seven months of 1968 receipts from exports exceeded import payments by $196.7m and there was a deficit of $88.3m on invisible items.

These transactions resulted in a current account surplus of $108.5m. On capital account there was a net outflow of $39.9m and the over-all balance was thus a surplus of $68.6m.

Compared with the same period in 1967 export receipts rose by $125.2m to $581.3m. The most significant increases were in receipts from meat (up $49.5m), wool (up $33.9m), and forest products (up $15.5m). Other animal products rose by $14.6m (mainly sheepskins and pelts, up $9.6m). Dairy Products

The bulk of the increase in receipts for miscellaneous items was in respect of manufactured goods, $7.4m higher. Total dairy products declined by sB.6m with decreases in butter and cheese receipts (down $5.4m and $9.2m respectively) being partly offset by an increase of s6m for other dairy products.

Import payments of $384.6m were sllm less than in the same period in 1967 (Government down $10.5m, private down so.sm). Thus, the outcome on trade transactions was a surplus of $196.7m, which was $136.2m higher than that for the Janu-ary-July period in 1967 and includes the effects of devaluation for the whole seven months. Invisible Payments Invisible payments increased by sll.lm to $169.1m and invisible receipts by $27.8m to sBo.Bm. The resulting deficit of $88.3m compares with an increase of $9.6m between the same seven-month period in 1967 and 1966. The improved outcome on both trade and invisible transactions is reflected by a current account surplus of $108.5m compared with a deficit of $44.3m for JanuaryJuly 1967. In the first seven months of 1968, when official borrowing was $36.2m less and official debt repayments $77.2m higher than in this period in 1967, there was a net capital outflow of $39.9m compared with an inflow of $84.7m for Janu-ary-July 1967. For the year ended July, 1968, export receipts rose by $98.3m to sBssm compared with the July, 1967, year. This increase, combined with a decrease of $64.4m in import payments, produced a surplus on trade transactions of $210.5m, which was $162.7m higher than for the year ended July, 1967. Trade Surplus

The deficit on invisible transactions, $164.9m, was $14.7m less than in the year ended July, 1967, and combined with the trade surplus gave a current account surplus of $45.6m compared with a deficit of $131.8m for the year ended July, 1967. Mainly because of reduced official borrowing and increased official debt repayments, the surplus on capital account of s23m was $121.2m lower than that recorded in the year ended July, 1967. In spite of the lower capital inflow the overall surplus rose from $12.5m for the year ended July, 1967, to $68.6m for the current period, thus reflecting the improvement in the current account that has taken place in recent months.

Overseas exchange transactions <$NZm) for the JanuaryJuly years 1966, 1967, and 1968: RECEIPTS 1966 1967 1968

Exports— Butter . 57.3 68.0 62.6 Cheese . 28.4 33.8 24.6 Other dairy products 31.7 3«j . 1 41.1 Meat 137.3 135.1 184.6 Wool . 17.1 97.4 131.2 Other animal products . 49.5 37.7 52.3 Forest products . 15.9 16.9 32.4 Other primary products . IK.7 22.9 32.6 Miscellaneous 9.7 9.3 19.9 Total exports . 519.8 456.1 581.3 Other current receipts . 50.8 53.1 80.8 Total current receipts . 570.5 509.2 662.1 Capital receipts— Government sale of investment . 10.5 31.4 55.8 Government borrowing . 21.3 41.9 62.7 I.M.F. drawings 5.8 21.0 — Other official borrowing —• 36.0 —— Private . 13.8 22.2 27.4 Total capital receipts . 51.2 152.5 145.9 Total receipts 621.7 661.7 808.0 PAYMENTS Imports— Government . 46.6 43.4 32.8 Private . 376.9 352.2 351.7 Total imports . 423.5 395.5 384.6 Other current payments— Government . 26.7 29.7 35 4 Private . 119.5 128.3 133.7 Total other payments . 146.1 158.0 169.1 Total current payments . 569.7 553.5 553.6 Capital payments— Government investment . 24.5 28.3 66.9 Government debt repayment 1.9 21.8 I.M.F. repurchases — — 62.5 Other official repayments — — 31.4 Private . . . 13.0 17.8 19.8 Total capital payments . 39.3 67.9 185.7 Total payments . 609.0 621.4 739.4 Balances — Balance on trade transactions .. +96.1 + 60.6 +196.7 Balance on invisible transactions -95.3 -104.9 —88.3 Current account balance . +0.8 -44.3 + 108.5 Capital account balance .. +11.9 +84.7 —39.9 Overall balance . . +12.7 +40.3 +68.6 Note: The New Zealand dollar was devalued bv 19.45 per cent on November 21, 1967, and this affects comparability.