2025.12.1622:08:56UTC+00New Zealand Current Account Gap Widens Sharply in Q3

In the third quarter of 2025, New Zealand recorded a substantial increase in its current account deficit, reaching NZD 8.37 billion. This figure considerably exceeds the NZD 1.30 billion deficit noted in the previous quarter and surpasses market projections. Notably, the goods balance transitioned to a deficit of NZD 3.44 billion from a surplus of NZD 2.64 billion in the preceding quarter. Similarly, the services account deficit expanded to NZD 1.78 billion, up from NZD 1.02 billion. Furthermore, the primary income deficit increased to NZD 2.99 billion compared to NZD 2.56 billion, whereas the secondary income gap slightly narrowed to NZD 0.15 billion from NZD 0.36 billion. On an annual basis, by September 30, 2025, the current account deficit stood at NZD 15.4 billion, marking an improvement from the NZD 21.9 billion deficit as of September 30, 2024. Despite the quarterly downturn attributed to weaker trade balances, the data reflect a notable enhancement in New Zealand's external financial position year-over-year.