New Zealand's seasonally adjusted current account deficit narrowed by $702 million to $3.4 billion in the June 2025 quarter, according to figures released by Stats NZ today.
This is the smallest deficit since a $3.1 billion deficit in the June 2021 quarter.
"The smaller current account deficit was due to a $1.0 billion narrowing of the primary income deficit," international accounts spokesperson Viki Ward said.
"This was mainly due to New Zealand investors earning more from their investments abroad."
The services balance widened by $124 million in the June 2025 quarter, while the goods balance was similar to the March 2025 quarter deficit.
| Quarter | Current account balance | Goods balance | Services balance | Primary and secondary income balance |
| Jun-05 | -2871000000 | -997000000 | 506000000 | -2379000000 |
| Sep-05 | -3105000000 | -1486000000 | 836000000 | -2454000000 |
| Dec-05 | -3092000000 | -1070000000 | 572000000 | -2594000000 |
| Mar-06 | -3671000000 | -1335000000 | 614000000 | -2950000000 |
| Jun-06 | -2718000000 | -892000000 | 672000000 | -2498000000 |
| Sep-06 | -2668000000 | -602000000 | 573000000 | -2639000000 |
| Dec-06 | -3010000000 | -953000000 | 806000000 | -2864000000 |
| Mar-07 | -3225000000 | -1051000000 | 778000000 | -2952000000 |
| Jun-07 | -3283000000 | -1045000000 | 702000000 | -2940000000 |
| Sep-07 | -3259000000 | -770000000 | 736000000 | -3226000000 |
| Dec-07 | -2688000000 | -100000000 | 601000000 | -3189000000 |
| Mar-08 | -3191000000 | -554000000 | 632000000 | -3270000000 |
| Jun-08 | -4263000000 | -1398000000 | 503000000 | -3368000000 |
| Sep-08 | -3913000000 | -929000000 | 312000000 | -3296000000 |
| Dec-08 | -3190000000 | -120000000 | 251000000 | -3321000000 |
| Mar-09 | -1940000000 | 521000000 | 538000000 | -2999000000 |
| Jun-09 | -315000000 | 537000000 | 508000000 | -1360000000 |
| Sep-09 | 340000000 | 599000000 | 771000000 | -1030000000 |
| Dec-09 | -2437000000 | 123000000 | 662000000 | -3222000000 |
| Mar-10 | -489000000 | 773000000 | 470000000 | -1732000000 |
| Jun-10 | -891000000 | 1104000000 | 573000000 | -2568000000 |
| Sep-10 | -982000000 | 759000000 | 476000000 | -2217000000 |
| Dec-10 | -2157000000 | 296000000 | 365000000 | -2818000000 |
| Mar-11 | -1641000000 | 730000000 | 309000000 | -2681000000 |
| Jun-11 | -1252000000 | 982000000 | 176000000 | -2411000000 |
| Sep-11 | -1722000000 | 454000000 | 384000000 | -2560000000 |
| Dec-11 | -1302000000 | 701000000 | 629000000 | -2632000000 |
| Mar-12 | -2488000000 | -275000000 | 183000000 | -2396000000 |
| Jun-12 | -2236000000 | 128000000 | 298000000 | -2662000000 |
| Sep-12 | -1781000000 | 207000000 | 267000000 | -2254000000 |
| Dec-12 | -1974000000 | 28000000 | 165000000 | -2166000000 |
| Mar-13 | -1957000000 | 131000000 | 291000000 | -2378000000 |
| Jun-13 | -2154000000 | -198000000 | 316000000 | -2272000000 |
| Sep-13 | -2082000000 | -172000000 | 294000000 | -2204000000 |
| Dec-13 | -851000000 | 1574000000 | 156000000 | -2580000000 |
| Mar-14 | -766000000 | 1488000000 | 302000000 | -2556000000 |
| Jun-14 | -2178000000 | 211000000 | 256000000 | -2644000000 |
| Sep-14 | -2291000000 | -244000000 | 329000000 | -2377000000 |
| Dec-14 | -2266000000 | -367000000 | 763000000 | -2662000000 |
| Mar-15 | -1651000000 | -93000000 | 871000000 | -2429000000 |
| Jun-15 | -2136000000 | -729000000 | 1067000000 | -2474000000 |
| Sep-15 | -1323000000 | -480000000 | 1314000000 | -2156000000 |
| Dec-15 | -1704000000 | -767000000 | 1256000000 | -2193000000 |
| Mar-16 | -972000000 | -391000000 | 1402000000 | -1984000000 |
| Jun-16 | -1357000000 | -550000000 | 1227000000 | -2034000000 |
| Sep-16 | -1792000000 | -728000000 | 1270000000 | -2334000000 |
| Dec-16 | -1446000000 | -872000000 | 1351000000 | -1924000000 |
| Mar-17 | -2487000000 | -852000000 | 1147000000 | -2783000000 |
| Jun-17 | -1655000000 | -575000000 | 1461000000 | -2540000000 |
| Sep-17 | -1843000000 | -99000000 | 1300000000 | -3043000000 |
| Dec-17 | -2344000000 | -526000000 | 1276000000 | -3094000000 |
| Mar-18 | -3395000000 | -1621000000 | 1319000000 | -3094000000 |
| Jun-18 | -3492000000 | -1481000000 | 1297000000 | -3308000000 |
| Sep-18 | -3009000000 | -879000000 | 902000000 | -3032000000 |
| Dec-18 | -2990000000 | -1137000000 | 1046000000 | -2899000000 |
| Mar-19 | -2507000000 | -796000000 | 878000000 | -2589000000 |
| Jun-19 | -2782000000 | -1069000000 | 853000000 | -2567000000 |
| Sep-19 | -2311000000 | -1182000000 | 1144000000 | -2273000000 |
| Dec-19 | -1583000000 | -773000000 | 972000000 | -1782000000 |
| Mar-20 | -1012000000 | -104000000 | 894000000 | -1803000000 |
| Jun-20 | -222000000 | 1861000000 | -335000000 | -1748000000 |
| Sep-20 | -926000000 | 823000000 | -52000000 | -1697000000 |
| Dec-20 | -1932000000 | 194000000 | -799000000 | -1328000000 |
| Mar-21 | -5213000000 | -1310000000 | -1780000000 | -2123000000 |
| Jun-21 | -3056000000 | -401000000 | -443000000 | -2213000000 |
| Sep-21 | -5050000000 | -1640000000 | -1088000000 | -2322000000 |
| Dec-21 | -6460000000 | -1745000000 | -2027000000 | -2688000000 |
| Mar-22 | -8759000000 | -2728000000 | -3135000000 | -2895000000 |
| Jun-22 | -8921000000 | -3104000000 | -2383000000 | -3435000000 |
| Sep-22 | -7096000000 | -2170000000 | -1765000000 | -3161000000 |
| Dec-22 | -8976000000 | -3371000000 | -2208000000 | -3397000000 |
| Mar-23 | -7575000000 | -3659000000 | -1404000000 | -2512000000 |
| Jun-23 | -6212000000 | -2182000000 | -803000000 | -3227000000 |
| Sep-23 | -6267000000 | -2816000000 | 72000000 | -3523000000 |
| Dec-23 | -5755000000 | -2337000000 | -284000000 | -3135000000 |
| Mar-24 | -5652000000 | -2160000000 | -453000000 | -3039000000 |
| Jun-24 | -5610000000 | -2093000000 | -332000000 | -3185000000 |
| Sep-24 | -4905000000 | -1376000000 | -268000000 | -3261000000 |
| Dec-24 | -3791000000 | -1030000000 | 249000000 | -3010000000 |
| Mar-25 | -4148000000 | -126000000 | -566000000 | -3456000000 |
| Jun-25 | -3446000000 | -128000000 | -690000000 | -2629000000 |
Primary income deficit narrows
In the June 2025 quarter, the primary income deficit narrowed by $1.0 billion to $2.3 billion. This is the smallest it has been since $2.2 billion was recorded in the September 2021 quarter.
"New Zealand's overseas invested pensions earned more income this quarter," Ward said.
"The overseas subsidiaries of New Zealand companies also recorded a growth in earnings this quarter."
Meanwhile, following four quarters of growth, foreign investors' earnings from their New Zealand investments decreased this quarter.
The primary income inflow increased by $821 million in the June 2025 quarter, to reach $5.2 billion, meanwhile, the outflow decreased by $183 million to reach $7.5 billion.
Goods balance widens
The seasonally adjusted goods deficit widened to $128 million in the June 2025 quarter, following a deficit of $126 million in the March 2025 quarter.
Goods exports decreased $896 million in the June 2025 quarter to $19.8 billion, led by falls in dairy, fruit, and meat. Goods imports decreased $895 million to $19.9 billion, led by falls in fuel and mechanical machinery and equipment.
Services deficit widens
In the June 2025 quarter, the seasonally adjusted services balance was a deficit of $690 million, compared with a deficit of $566 million in the March 2025 quarter.
Services exports decreased by $12 million to $8.0 billion, while services imports increased by $112 million to $8.7 billion.
International investment position
At 30 June 2025, New Zealand's net international investment liability position was $203.9 billion, compared with $211.2 billion at 31 March 2025.
In the June 2025 quarter, the value of New Zealand's international assets increased by $18.3 billion to $452.8 billion. Meanwhile, New Zealand's liabilities to the rest of the world also increased by $11.0 billion to $656.7 billion.
Annual current account deficit
New Zealand's annual current account deficit was $16.0 billion (3.7 percent of gross domestic product (GDP)) in the year ended 30 June 2025.
This compares with a $18.3 billion deficit in the year ended 31 March 2025 (4.2 percent of GDP).
A current account deficit indicates that New Zealand is spending more than it is earning overseas. The size of the current account balance in relation to GDP shows its significance to New Zealand's overall economy.
| Year ended in quarter | Annual current account balance to GDP ratio (%) |
| Jun-05 | -6.1 |
| Sep-05 | -6.6 |
| Dec-05 | -7.1 |
| Mar-06 | -7.8 |
| Jun-06 | -7.6 |
| Sep-06 | -7.3 |
| Dec-06 | -7.2 |
| Mar-07 | -6.8 |
| Jun-07 | -6.9 |
| Sep-07 | -7.1 |
| Dec-07 | -6.9 |
| Mar-08 | -6.6 |
| Jun-08 | -7.0 |
| Sep-08 | -7.5 |
| Dec-08 | -7.7 |
| Mar-09 | -7.1 |
| Jun-09 | -5.0 |
| Sep-09 | -2.6 |
| Dec-09 | -2.2 |
| Mar-10 | -1.5 |
| Jun-10 | -1.7 |
| Sep-10 | -2.4 |
| Dec-10 | -2.3 |
| Mar-11 | -2.8 |
| Jun-11 | -2.8 |
| Sep-11 | -3.2 |
| Dec-11 | -2.8 |
| Mar-12 | -3.1 |
| Jun-12 | -3.6 |
| Sep-12 | -3.6 |
| Dec-12 | -3.9 |
| Mar-13 | -3.6 |
| Jun-13 | -3.6 |
| Sep-13 | -3.8 |
| Dec-13 | -3.2 |
| Mar-14 | -2.5 |
| Jun-14 | -2.4 |
| Sep-14 | -2.5 |
| Dec-14 | -3.1 |
| Mar-15 | -3.4 |
| Jun-15 | -3.3 |
| Sep-15 | -3.1 |
| Dec-15 | -2.8 |
| Mar-16 | -2.4 |
| Jun-16 | -2.1 |
| Sep-16 | -2.2 |
| Dec-16 | -2.1 |
| Mar-17 | -2.6 |
| Jun-17 | -2.6 |
| Sep-17 | -2.7 |
| Dec-17 | -2.9 |
| Mar-18 | -3.1 |
| Jun-18 | -3.6 |
| Sep-18 | -4.1 |
| Dec-18 | -4.3 |
| Mar-19 | -4.0 |
| Jun-19 | -3.6 |
| Sep-19 | -3.4 |
| Dec-19 | -2.9 |
| Mar-20 | -2.4 |
| Jun-20 | -1.6 |
| Sep-20 | -0.9 |
| Dec-20 | -1.0 |
| Mar-21 | -2.6 |
| Jun-21 | -3.2 |
| Sep-21 | -4.5 |
| Dec-21 | -5.8 |
| Mar-22 | -6.6 |
| Jun-22 | -7.9 |
| Sep-22 | -8.5 |
| Dec-22 | -9.0 |
| Mar-23 | -8.3 |
| Jun-23 | -7.5 |
| Sep-23 | -7.1 |
| Dec-23 | -6.3 |
| Mar-24 | -5.7 |
| Jun-24 | -5.5 |
| Sep-24 | -5.2 |
| Dec-24 | -4.7 |
| Mar-25 | -4.2 |
| Jun-25 | -3.7 |
