by Chris Becker
NZ just printed its current account deficit (CAD) for the March quarter, which fell by almost half from the last quarter, all on the back of agricultural exports.
It is still elevated as measured by a percentage of GDP – some 2.8% although this is down from 3.9% in the previous 12 months
International reinsurance claims from the devastating Canterbury earthquakes helped here – nearly NZ$20billion claimed and almost NZ$15billion settled.
Dairy prices – more closely followed in the NZ economy than iron ore in Australia (although the latter is arguably more important here!) – have moderated signficantly in NZD terms recently – chart courtesy of interest.co.nz:
More from Statistics NZ:
“Exports of goods increased $360 million across a range of commodities, with meat the most significant contributor to the rise,” Statistics NZ said.
“Dairy product exports fell from last quarter’s peak, but remain high. Exports of services also increased, as overseas visitors to New Zealand spent more while they were here,” it said.
The tourism sector could face headwinds as the NZD continues to surge against all major currencies, especially the Aussie where parity seems on the cards:
But also USD and EUR:
