New Zealand Current Account Gap Widens Sharply in Q3

2025-12-16 22:08 By Felipe Alarcon 1 min. read

New Zealand posted a current account deficit of NZD 8.37 billion in Q3 2025, widening sharply from a NZD 1.30 billion shortfall in the previous quarter and above market expectations.

The goods balance shifted back into a deficit of NZD 3.44 billion from a NZD 2.64 billion surplus a quarter earlier, while the services account deficit widened to NZD 1.78 billion from NZD 1.02 billion.

Meanwhile, the primary income deficit widened to NZD 2.99 billion from NZD 2.56 billion, and the secondary income gap narrowed to NZD 0.15 billion from NZD 0.36 billion.

On an annual basis, the current account deficit for the year ended September 30, 2025, stood at NZD 15.4 billion, improving from NZD 21.9 billion in the year ended September 30, 2024.

Overall, the data point to a marked improvement in New Zealand’s external position on an annual basis, despite a significant deterioration at the quarterly level driven by weaker trade balances.



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New Zealand Current Account Gap Widens Sharply in Q3
New Zealand posted a current account deficit of NZD 8.37 billion in Q3 2025, widening sharply from a NZD 1.30 billion shortfall in the previous quarter and above market expectations. The goods balance shifted back into a deficit of NZD 3.44 billion from a NZD 2.64 billion surplus a quarter earlier, while the services account deficit widened to NZD 1.78 billion from NZD 1.02 billion. Meanwhile, the primary income deficit widened to NZD 2.99 billion from NZD 2.56 billion, and the secondary income gap narrowed to NZD 0.15 billion from NZD 0.36 billion. On an annual basis, the current account deficit for the year ended September 30, 2025, stood at NZD 15.4 billion, improving from NZD 21.9 billion in the year ended September 30, 2024. Overall, the data point to a marked improvement in New Zealand’s external position on an annual basis, despite a significant deterioration at the quarterly level driven by weaker trade balances.
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NZ Current Account Deficit Narrows Sharply in Q2
New Zealand posted a current account deficit of NZD 0.97 billion in Q2 2025, significantly narrowing from a NZD 3.3 billion shortfall in the same period last year and well below market expectations of NZD 2.7 billion. The goods balance surplus widened sharply to NZD 2.67 billion from NZD 0.53 billion a year earlier, while the services account deficit increased to NZD 1 billion from NZD 0.66 billion. Meanwhile, the primary income deficit narrowed to NZD 2.3 billion from NZD 2.7 billion, and the secondary income gap fell to NZD 0.37 billion from NZD 0.49 billion. On an annual basis, the current account deficit for the year ended June 30, 2025, stood at NZD 16.0 billion, improving from NZD 18.3 billion in the year ended March 31, 2025. Overall, the data points to a marked improvement in New Zealand’s external position, driven largely by stronger goods exports and narrower income deficits.
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New Zealand recorded a current account deficit of NZD 2.32 billion in the March quarter of 2025, narrowing from a NZD 3.82 billion gap a year earlier but slightly above expectations of a NZD 2.2 billion shortfall. The goods balance swung to a NZD 0.45 billion surplus from a NZD 2.57 billion deficit in Q4, while the services account improved to a NZD 1.56 billion surplus from a NZD 0.26 billion gap. However, the primary income deficit widened to NZD 4.23 billion from NZD 3.94 billion, and the secondary income gap rose to NZD 0.1 billion from NZD 0.03 billion. For the year ended March 31, 2025, the annual current account deficit totaled NZD 24.7 billion, or 5.7% of GDP.
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