NZ Balance of Payments: June 2025 Quarter Data

Balance of payments records the value of the country's transactions with the rest of the world. It shows changes in financial claims on, and liabilities to, the rest of the world. International investment position is a snapshot of the country's financial assets and liabilities.

Key facts

Figures compare the June 2025 quarter with the March 2025 quarter (unless otherwise stated).

• New Zealand's seasonally adjusted current account deficit was $3.4 billion.
• The current account deficit for the year ended June 2025 narrowed to $16.0 billion (3.7 percent of gross domestic product (GDP)) compared with $23.3 billion deficit for the year ended June 2024 (5.5 percent of GDP).

At 30 June 2025:

• New Zealand's net international liability position narrowed to $203.9 billion, compared with $211.2 billion at 31 March 2025.

In the June 2025 quarter, the:

• seasonally adjusted goods deficit widened to $128 million
• seasonally adjusted services deficit widened to $690 million
• primary income deficit narrowed to $2.3 billion
• financial account recorded a net inflow of $796 million.

Current account

New Zealand's seasonally adjusted current account balance was a $3.4 billion deficit in the June 2025 quarter, $702 million narrower than the March 2025 quarter deficit.

The narrowing of the seasonally adjusted current account deficit was due to:

• $1.0 billion narrowing of the primary income balance deficit
• $1.0 million widening of the goods deficit
• $124 million widening of the services deficit
• $177 million widening of the secondary income deficit.

The annual current account deficit in the year ended 30 June 2025 was $16.0 billion (3.7 percent of GDP).

New Zealand investment abroad

New Zealand investment abroad recorded a $6.6 billion net outflow in the June 2025 quarter, as New Zealanders increased assets held with non-residents.

The net investment outflow was driven by outflows of:

• $8.1 billion in portfolio investment
• $3.4 billion in other investment
• $1.4 billion in reserve assets.

The investment outflows were offset by:

• $3.2 billion inflow in direct investment
• $3.1 billion receipts from the settlements of financial derivative assets.

Foreign investment in New Zealand

Foreign investment in New Zealand recorded a $7.4 billion net inflow in the June 2025 quarter, as New Zealand increased its liabilities with the rest of the world.

The net investment inflow was driven by inflows of:

• $13.5 billion in portfolio investment
• $1.8 billion in direct investment.

This was partly offset by an outflow of $5.6 billion in other investment and $2.3 billion payments for settlements of financial derivative liabilities.

International investment position

The net international investment position represents the difference between New Zealand's assets and liabilities with the rest of the world.

At 30 June 2025, New Zealand's international assets were $452.8 billion, $18.3 billion larger than at 31 March 2025. International liabilities were $656.7 billion, $11.0 billion larger over the same period. This resulted in a net liability position of $203.9 billion (46.8 percent of GDP), $7.3 billion narrower than at 31 March 2025 (48.9 percent of GDP).

The value of New Zealand's reserve assets increased to $45.8 billion in the June 2025 quarter, an increase of $435 million from the previous quarter. The Reserve Bank of New Zealand is the main contributor to this growth, and it reflects their new framework for managing foreign reserves highlighted in 2023.

The increase in New Zealand's international assets was:

• $18.8 billion increase due to market price changes
• $6.6 billion net outflow from financial account assets transactions
• $6.2 billion increase in financial derivative valuation changes
• $4.3 billion increase due to other valuation changes
• $17.6 billion decrease due to exchange rate changes.

The increase in New Zealand's international liabilities was:

• $7.4 billion net inflow from financial account liabilities transactions
• $3.9 billion increase due to market price changes
• $1.8 billion increase due to financial derivative valuation changes
• $1.1 billion increase due to other valuation changes
• $3.2 billion decrease due to exchange rate changes.

Net external debt

Net external debt (international assets and liabilities excluding equity and financial derivatives) narrowed by $1.6 billion during the June 2025 quarter, to reach $217.7 billion at 30 June 2025 (49.9 percent of GDP). This was a result of external debt increasing $6.3 billion and external lending increasing $7.9 billion.

Revisions to the current account balance to GDP ratio

The current account balance to GDP ratio is calculated by dividing the year-ended quarterly current account balance by the year-ended quarterly GDP expenditure in current prices.

The data sources and methods updates in this quarter has led to revisions in the current account ratio. These are shown in the graph below from the March 2022 quarter.

2025 balance of payments and national accounts: Data sources and methods outlines all revisions to the current account balance, which are reflected in the current account ratio.

More data

Use Infoshare for balance of payments time series:

Subject category: Economic indicators
Group: Balance of payments - BOP
Group: International investment position - IIP

Definitions and metadata

Balance of payments - DataInfo+ details the general methodology used to produce balance of payments statistics.

Balance of payments concepts - DataInfo+ provides the definitions of terms used in this release.

Technical enquiries

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04 931 4600

ISSN 1178-0215

Next release

Balance of payments and international investment position: September 2025 quarter will be released on 17 December 2025.