81-82 BOP deficit more than doubles

Press, 11 January 1983, Page 18

81-82 BOP deficit more than doubles

BA Wellington New Zealand's balance-of-payments deficit more than doubled in the March. 1982. year to 51650.1 M. the DeputyGovernment Statistician. Mr R. J. Latimer, said in a statement yesterday. The figure was provisionally announced last June. In the year to the end of March. 1981. the deficit was 5822.8 M. During the 1981-82 financial year. New Zealand exported goods valued at 56621.0 M. 5929.2 M (16.3 per cent) more than in the previous year. Goods worth 56649.2 M f.o.b. were imnorted in the 1981-82 year. 51462.3 M (28.2 per cent) more. Consequently, the balance on merchandise trade for the 1981-82 year was a deficit of $28.2M, compared with a surplus of $504.9M. New Zealand's earnings from services supplied to the

i rest of the world amounted . to 51518.8 M in the 1981-82 i vear, J308.6M (25.5 per cent) . more than in the previous ■ vear ■ ’ Services supplied by the i rest of the world amounted > to 52430.5 M. an increase of 5428.2 M (21.4 per cent) on the previous vear. In services, travel earned ; New Zealand 5298.5 M (5239.1 M the previous year), and cost the country 5621.9 M (5528.5 M New Zealand's earnings from investment income amounted to 5273.6 M. 5107.1 M more than for 198081. However, investment income accruing to the rest of the world amounted to 51032.3 M. 5274.3 M more than for 1980-81. Consequently, the balance on invisibles has further deteriorated from a deficit of 51383.6 M in 1980-81 to a deficit of 51670.3 M.

Direct investment in New Zealand bv overseas firms was 5374.2 M (5193.7 M in 198081). The $1275.7M over-all deficit was more than covered bv the compensatory financing transactions by the Government and the Reserve Bank. Consequently, there was an increase in New Zealand's overseas reserves of $57.4M for the 1981-82 year. This compares with a decrease of $79.5M in overseas reserves in the previous financial vear. Total compensatory financing amounted to $2807M in 1981-82, while total repayments amounted to $1474.7M. Consequently, net compensatory financing (i.e. total official borrowings less total official repayments) was 51333.1 M, compared with $650.8M in the previous financial vear.