Deficit of $18M during March

Press, 13 May 1981, Page 23

Deficit of $18M during March

1 A Wellington - « 1 o llrr ®" t account deficit ot 518 million was recorded in overseas exchange transactions during the month of March, 1981. compared with ?non rp l us of S32M in March. 1980, the Reserve Bank reported yesterday. . The deficit on the current account in the year to March, 1981. was S7I6M compared with S4B2M in the previous 12 months, and 5665 M in the year to February. 1981, the bank said. Export receipts for the month, at SSB6M. were 12 per cent higher than in the previous March. Import payments •were S4B9M in March. 27 per cent higher than a year earlier. The trade surplus was S97M, down S43M and invisible receipts were 28 per cent higher compared with the previous March.

Travel receipts were a large contributor to this rise, being 55 per cent higher, the ■bank said.

Invisible payments rose 17 per cent on the previousMarch. The deficit On invisible transactions was SII6M, compared with SIOBM a year ago. There was a total" net private capital inflow of SI6M, and an inflow of official capital (including I.M.F. transactions) of S3OM. in the three months to March 31 export receipts rose 3:20 per cent to*sls2sM, compared with the previous March quarter. : > This increase was a very' lbw figure compared with increases in earlier quarters the bank said.

Some-oxplanation was provided by the British shipping, strike which disrupted both exports and imports during, the quarter. (However, other underlying: factors depressed export receipts. Prices for «neat were' flow, particularly dor beef, end wool prices remained below the {previous season’s level, with the Wool Board (buying an a substantial proportion of auction offerings, at said. The market remained: weak for bides, skins, and leather. ■ '“Manufactured export re-

ceipts growth slowed in the quarter, although no reason for this is apparent.” Import payments were 14 per cent higher in the March quarter. The trade surplus was $236M, down from $353M in the previous corresponding period. The deficit on invisibles deteriorated from $255M to S3O6M and the current account balance changed from a S97M surplus in the previous March quarter to a deficit of S69M in the latest quarter. Export receipts during the March 31 year were 19 per

cent higher, with rises in all categories except other animal products. Invisible receipts were up 24 per cent with the strongest increases being in the transport, travel, and personal receipts categories. Import payments grew 23 per cent and invisible pavments were 19 per cent up.

There was a net capital inflow for the year of $639M consisting of a private capital inflow’ of SBOM, and an official capital inflow of $559M (including I.M.F. transactions). Reserves fell S6OM during the year.