Current account deficit halved

Press, 2 September 1983, Page 7

Current account deficit halved

PA Wellington Higher export receipts and lower imports have halved New Zealand’s current account deficit in the last year. Latest Reserve Bank overseas exchange statistics reveal a current account deficit of $B7B million for the year to the end of July compared with a deficit of $1053 million for the year ended June, 1983, and $lBO9 million to the end of July last year. The statistics record New Zealand’s transactions with the rest of the world on a cash basis. A current account deficit of $159 million was recorded for the month of July, compared with $lO6 million in June and a deficit of $334 million in July, 1982. Exports receipts for July ($689 million) were up 29 per cent on July last year, the main increase being $lOO million in receipts for

meat. The bank said this was partly caused by the inclusion of receipts of $3O million from sales of beef and veal relating to previous months and also included $26 million of receipts from sales of lamb to. Iran.

The increase in export receipts was again accompanied by lower import payments (down 7 per cent on July, 1982) which left a trade surplus of $ll9 million in July compared with a deficit of $Bl million in July last year. The deficit on invisible transaction was $278 million in July this year, $25 million higher than the same month last year, and while no official borrowing took place in the month, official loan repayments totalled $4O million. There was a net private capital inflow of $52 million in July.