NZ Current Account Deficit Hits $3.8B in Sept Quarter

New Zealand's seasonally adjusted current account deficit widened by $153 million to $3.8 billion in the September 2025 quarter, according to figures released by Stats NZ today.

"The primary income balance widened by $435 million, while the goods balance widened by $414 million for the September 2025 quarter," international accounts spokesperson Viki Ward said.

Primary income deficit widens

In the September 2025 quarter, the primary income deficit was $3.0 billion.

"The main contributor to the primary income deficit was a net outflow of investment income, led by dividend payments overseas," Ward said.

New Zealand's investors earnings fell $293 million, while foreign investors earnings increased by $200 million.

A key contributor to New Zealand's lower investors earnings were due to lower profits of New Zealand's overseas subsidiaries.

Foreign investors earned over two and a half times higher dividends this quarter compared with the last quarter. The increase in dividends paid this quarter was due to several banks paying their parent companies.

Goods balance widens

The seasonally adjusted goods deficit was $489 million in the September 2025 quarter, following a deficit of $75 million in the June 2025 quarter.

Goods imports increased $801 million (4.0 percent) to $20.7 billion, led by rises in motor cars and mechanical machinery.

Goods exports increased $388 million (2.0 percent) to $20.2 billion, led by rises in dairy, fruit, and meat.

Services deficit narrows

In the September 2025 quarter, the seasonally adjusted services balance was a deficit of $148 million, compared with a deficit of $634 million in the June 2025 quarter.

Services exports increased by $434 million to $8.5 billion, led by travel. Services imports decreased by $52 million to $8.6 billion.

Financial account records a net inflow

In the September 2025 quarter, New Zealand's financial account recorded a net inflow of $4.7 billion, which partially funded the current account deficit.

"This quarter, New Zealand's borrowing was driven primarily by the issuance of bonds and shares to foreign investors," Ward said.

International investment position

New Zealand's net international liability position was $202.5 billion at 30 September 2025, $6.9 billion lower than $209.5 billion at 30 June 2025.

"International share markets had a positive quarterly performance, meanwhile, the depreciation of the New Zealand dollar against major currencies led to moderate increases in both assets and liabilities," Ward said.

Annual current account deficit

New Zealand's annual current account deficit was $15.4 billion (3.5 percent of gross domestic product (GDP)) in the year ended 30 September 2025.

This compares with a $16.3 billion deficit in the year ended 30 June 2025 (3.7 percent of GDP).