NZ: Goods deficit expected to narrow - ANZ

New Zealand’s June quarter Balance of Payments figures are released at 10:45am next Wednesday and analysts at ANZ expect the seasonally adjusted deficit to narrow, with solid contributions from both goods and services.

Key Quotes

“The goods deficit is expected to narrow as growth in exports outpaces imports – Q2’s Overseas Trade Indices suggest the 2.4% rise in export prices and the 0.6% lift in the goods terms of trade will more than offset the small drag from net export volumes.”

“Likewise, services exports are expected to outpace imports owing to solid tourism and recent NZD weakness.”

“Providing a partial offset, we’ve pencilled in a slight widening of the income deficit, with outflows picking up on higher global interest rates.”

“The annual current account deficit is expected to widen to 2.9% of GDP owing to base effects.”