FX.co ★ NZ Current Account Deficit Narrows Sharply in Q2

In the second quarter of 2025, New Zealand reported a current account deficit of NZD 0.97 billion, a substantial reduction from the NZD 3.3 billion deficit recorded in the same quarter the previous year and significantly below the market forecast of NZD 2.7 billion. This improvement is attributed to a notable increase in the goods balance surplus, which expanded to NZD 2.67 billion from NZD 0.53 billion year-on-year. However, the services account saw a rise in its deficit, climbing to NZD 1 billion from NZD 0.66 billion. The primary income deficit decreased to NZD 2.3 billion, down from NZD 2.7 billion, while the secondary income deficit lessened to NZD 0.37 billion from NZD 0.49 billion. Over the year ending June 30, 2025, the current account deficit was NZD 16.0 billion, an improvement from NZD 18.3 billion for the year ending March 31, 2025. Collectively, these figures highlight a significant enhancement in New Zealand's external financial position, primarily fueled by stronger goods exports and reduced income deficits.