Current account surplus down $2M

Press, 11 May 1979, Page 18

Current account surplus down $2M

PA Wellington New' Zealand had a current account surplus of S3BM in March, S2M less than the surplus erf S4OM in March, 1978. For the year ended March, 1979, the current account deficit was $426M, an improvement of SB3M on the deficit of SSIOM recorded for the previous year, according to Reserve Bank statistics. Export receipts in March, at S4IOM, were 17 per cent higher than in March, 1978, largely because of the higher level of meat, wool and manufactured exports. Invisible receipts, at S99M, increased 42 per cent compared with March 1978, reflecting higher transport and travel receipts. Import payments, at S29IM, and invisible payments, at SIBIM, were up 18 per cent and 36 per cent, respectively, on the corresponding month in 1978, the latter largely because of high levels of official debt interest and transport payments. The surplus on trade transactions for March, 1979, at SIISM, was SI6M higher than the surplus of $’O3M recorded in March, 1978. The invisible deficit grew to SBIM from a deficit of S63M recorded a year earlier. Capita] account transactions in March included the drawing of one Government loan which was offset by repayments of one loan and various other debt repayments producing a deficit of S2IM for the official capital account. The private capital account balance for March was a deficit of S4M. The current account surplus for the three months to March was S42M, which is $34.M less than

the surplus in the corresponding three months of 1978. The balance on trade transactions showed a surplus of $256M, while the deficit on invisible transactions was S2I4M. Export receipts, at SIOBBM, were up 20 per cent on the corresponding three months last year, while import payments at SB32M increased 18 per cent. The official capital account balance recorded an inflow of SI2OM, while the private capital account recorded an outflow of S9M, which combined, produced a total capital inflow of $ll IM. The current account deficit for the year ended March, 1979, was $426M, compared with the deficit of SSIOM for a year earlier. The deficit was made up of a surplus of S66OM on trade transactions (an improvement of $332M over the year earlier) and an invisible deficit of SIOB7M ($249M higher than the previous year). The improved trade balance reflects a growth of 13 per cent in export receipts, with meat receipts continuing to be the largest contributor to the growth.

Manufactured exports rose by $11.3M to S6I4M, becoming the third largest contributor to total receipts.

Most categories of receipts increased, the exceptions being butter, cheese and other dairy products. Import payments rose 4 per cent to $3190M continuing the rising trend in recent months. Invisible receipts were up 9 per cent to SBI2M, while invisible payments continued to rise at a faster rate (20 per cent) to SIB9BM. Capital transactions in the year under review (including International Monetary Fund transactions) resulted in a net inflow of $225M, comprising a net official capital inflow of $276M and a net private capital outflow of SSIM. This compares with an official capital inflow Of $472M and a private capital inflow of S26OM to give a total capital inflow of $732M for the year ended March, 1978. Official overseas reserves at the end of March amounted to SBI2M.