Balance of payments records the value of the country’s transactions with the rest of the world. It shows changes in financial claims on, and liabilities to, the rest of the world. International investment position is a snapshot of the country’s financial assets and liabilities.
Key facts
Figures compare December 2023 quarter with September 2023 quarter (unless otherwise stated).
- New Zealand’s seasonally adjusted current account deficit widened by $167 million to $6.9 billion.
- The current account deficit for the year ended 31 December 2023 narrowed to $27.8 billion (6.9 percent of gross domestic product (GDP)) from the $33.4 billion deficit in the year ended 31 December 2022 (8.8 percent of GDP).
As at 31 December 2023:
- New Zealand’s net international investment liability position was $209.6 billion, compared with $197.9 billion as at 30 September 2023.
In the December 2023 quarter:
- seasonally adjusted goods deficit narrowed to $2.9 billion
- seasonally adjusted services deficit widened to $438 million
- primary income deficit widened to $3.4 billion
- financial account recorded a net inflow of $12.9 billion.
Current account
New Zealand’s seasonally adjusted current account balance was a $6.9 billion deficit in the December 2023 quarter, $167 million wider than the September 2023 quarter deficit.
The widening of the seasonally adjusted current account deficit was mainly due to:
- $304 million widening of the services deficit
- $24 million widening of the secondary income deficit
- $12 million widening of the primary income deficit.
The widening of the seasonally adjusted current account deficit was partly offset by $173 million narrowing of the goods deficit.
| Component | Change |
| Seasonally adjusted goods balance | 173000000 |
| Seasonally adjusted services balance | -304000000 |
| Primary income balance | -12000000 |
| Secondary income balance | -24000000 |
The annual current account deficit in the year ended 31 December 2023 was $27.8 billion (6.9 percent of GDP), $5.6 billion narrower than in the year ended 31 December 2022 (8.8 percent of GDP).
| Year ended | Current account balance |
| Dec-03 | -3513000000 |
| Mar-04 | -4057000000 |
| Jun-04 | -4114000000 |
| Sep-04 | -5755000000 |
| Dec-04 | -7029000000 |
| Mar-05 | -7943000000 |
| Jun-05 | -9538000000 |
| Sep-05 | -10512000000 |
| Dec-05 | -11485000000 |
| Mar-06 | -12738000000 |
| Jun-06 | -12460000000 |
| Sep-06 | -12180000000 |
| Dec-06 | -12147000000 |
| Mar-07 | -11616000000 |
| Jun-07 | -12138000000 |
| Sep-07 | -12800000000 |
| Dec-07 | -12555000000 |
| Mar-08 | -12398000000 |
| Jun-08 | -13201000000 |
| Sep-08 | -14116000000 |
| Dec-08 | -14706000000 |
| Mar-09 | -13459000000 |
| Jun-09 | -9567000000 |
| Sep-09 | -5049000000 |
| Dec-09 | -4177000000 |
| Mar-10 | -2832000000 |
| Jun-10 | -3363000000 |
| Sep-10 | -4827000000 |
| Dec-10 | -4613000000 |
| Mar-11 | -5615000000 |
| Jun-11 | -5825000000 |
| Sep-11 | -6765000000 |
| Dec-11 | -5904000000 |
| Mar-12 | -6699000000 |
| Jun-12 | -7700000000 |
| Sep-12 | -7856000000 |
| Dec-12 | -8494000000 |
| Mar-13 | -7948000000 |
| Jun-13 | -7847000000 |
| Sep-13 | -8369000000 |
| Dec-13 | -7232000000 |
| Mar-14 | -5864000000 |
| Jun-14 | -5738000000 |
| Sep-14 | -6078000000 |
| Dec-14 | -7542000000 |
| Mar-15 | -8144000000 |
| Jun-15 | -8197000000 |
| Sep-15 | -7622000000 |
| Dec-15 | -7056000000 |
| Mar-16 | -6140000000 |
| Jun-16 | -5311000000 |
| Sep-16 | -5686000000 |
| Dec-16 | -5379000000 |
| Mar-17 | -6741000000 |
| Jun-17 | -6904000000 |
| Sep-17 | -7188000000 |
| Dec-17 | -8140000000 |
| Mar-18 | -8854000000 |
| Jun-18 | -10450000000 |
| Sep-18 | -11979000000 |
| Dec-18 | -12701000000 |
| Mar-19 | -11786000000 |
| Jun-19 | -10831000000 |
| Sep-19 | -10233000000 |
| Dec-19 | -8938000000 |
| Mar-20 | -7519000000 |
| Jun-20 | -4922000000 |
| Sep-20 | -2852000000 |
| Dec-20 | -3164000000 |
| Mar-21 | -8519000000 |
| Jun-21 | -11186000000 |
| Sep-21 | -15792000000 |
| Dec-21 | -20552000000 |
| Mar-22 | -23600000000 |
| Jun-22 | -28602000000 |
| Sep-22 | -31136000000 |
| Dec-22 | -33447000000 |
| Mar-23 | -31754000000 |
| Jun-23 | -29881000000 |
| Sep-23 | -29766000000 |
| Dec-23 | -27803000000 |
| Year ended in quarter | Annual current account balance to GDP ratio (%) |
| Dec-03 | -2.5 |
| Mar-04 | -2.8 |
| Jun-04 | -2.8 |
| Sep-04 | -3.8 |
| Dec-04 | -4.6 |
| Mar-05 | -5.1 |
| 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 | -7.8 |
| Mar-09 | -7.1 |
| Jun-09 | -5.1 |
| 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 | -3.7 |
| 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 | -2.0 |
| Mar-17 | -2.5 |
| Jun-17 | -2.5 |
| Sep-17 | -2.6 |
| Dec-17 | -2.8 |
| Mar-18 | -3.0 |
| Jun-18 | -3.5 |
| Sep-18 | -4.0 |
| Dec-18 | -4.2 |
| Mar-19 | -3.8 |
| Jun-19 | -3.5 |
| Sep-19 | -3.3 |
| Dec-19 | -2.8 |
| Mar-20 | -2.3 |
| Jun-20 | -1.6 |
| Sep-20 | -0.9 |
| Dec-20 | -1.0 |
| Mar-21 | -2.6 |
| Jun-21 | -3.3 |
| Sep-21 | -4.6 |
| Dec-21 | -5.8 |
| Mar-22 | -6.6 |
| Jun-22 | -7.9 |
| Sep-22 | -8.3 |
| Dec-22 | -8.8 |
| Mar-23 | -8.2 |
| Jun-23 | -7.6 |
| Sep-23 | -7.4 |
| Dec-23 | -6.9 |
Goods and services
In the December 2023 quarter, the seasonally adjusted goods deficit narrowed by $173 million, to $2.9 billion.
Goods exports decreased $115 million to $16.7 billion, driven by fruit and dairy products.
Goods imports decreased $287 million to $19.7 billion, driven by passenger motor cars and transport equipment. The decrease in goods imports was offset by increases in non-crude fuels.
The seasonally adjusted services deficit widened by $304 million to $438 million in the December 2023 quarter.
Services exports decreased $240 million, driven by both travel services (the spending by overseas visitors in New Zealand) and transportation services. Meanwhile, services imports increased $64 million, driven by travel services (the spending of New Zealanders overseas).
Primary and secondary income
The primary income inflows and outflows between New Zealand and the rest of the world represent income earned from investments and compensation of employees.
The primary income deficit was $3.4 billion in the December 2023 quarter, $12 million wider than the previous quarter.
Income from New Zealand investment abroad decreased $190 million from the previous quarter to $3.2 billion in the December 2023 quarter. The decrease was due to:
- $158 million decrease in portfolio investment income
- $52 million decrease in reserve assets income
- $35 million decrease in other investment income.
The decrease in income from New Zealand investment abroad was partly offset by:
- $53 million increase in direct investment income.
Income earned on foreign investment in New Zealand decreased $159 million from the previous quarter to $6.5 billion. The decrease was due to:
- $147 million decrease in portfolio investment income
- $17 million decrease in direct investment income.
There was a $5 million increase in other investment income.
In the December 2023 quarter, the secondary income balance widened by $24 million to an $83 million deficit.
Financial account
In the December 2023 quarter, the financial account recorded a net investment inflow of $12.9 billion. The net investment inflow was made up of a $10.3 billion net inflow of New Zealand investment abroad and a $2.6 billion net inflow of foreign investment in New Zealand.
| Component | Assets | Liabilities |
| Direct investment | -82000000 | 2783000000 |
| Portfolio investment | 1180000000 | 6837000000 |
| Financial derivatives | -3568000000 | -1747000000 |
| Other investment | -4614000000 | -5271000000 |
| Reserve assets | -3241000000 | 0 |
New Zealand investment abroad
New Zealand investment abroad recorded a $10.3 billion net investment inflow in the December 2023 quarter, as New Zealanders decreased assets held with non-residents.
The net investment inflow was driven by net inflows of:
- $4.6 billion in other investment assets
- $3.6 billion due to receipts from the settlement of financial derivative assets
- $3.2 billion in reserve assets
- $82 million in direct investment.
The net investment inflow was partly offset by a net outflow of $1.2 billion in portfolio investment.
Foreign investment in New Zealand
Foreign investment in New Zealand recorded a net inflow of $2.6 billion in the December 2023 quarter, which increased New Zealand’s liabilities with the rest of the world.
The net investment inflow was driven by net inflows of:
- $6.8 billion in portfolio investment
- $2.8 billion in direct investment.
The net investment inflow of foreign investment was offset by net outflows of:
- $5.3 billion in other investment
- $1.7 billion in payments for settlements of financial derivative liabilities.
International investment position
The net international investment position represents the difference between New Zealand’s assets and liabilities with the rest of the world.
At 31 December 2023, New Zealand’s international assets were $361.0 billion, $2.2 billion more than at 30 September 2023. International liabilities were $570.7 billion, $14.0 billion more than at 30 September 2023.
The difference between the international liabilities and assets resulted in a net international investment liability position of $209.6 billion (51.7 percent of GDP), $11.8 billion wider than at 30 September 2023.
| Quarter | Net international investment position |
| Dec-03 | -96145000000 |
| Mar-04 | -100596000000 |
| Jun-04 | -99623000000 |
| Sep-04 | -106093000000 |
| Dec-04 | -111481000000 |
| Mar-05 | -110773000000 |
| Jun-05 | -111510000000 |
| Sep-05 | -116818000000 |
| Dec-05 | -120665000000 |
| Mar-06 | -118345000000 |
| Jun-06 | -118985000000 |
| Sep-06 | -124574000000 |
| Dec-06 | -130589000000 |
| Mar-07 | -129757000000 |
| Jun-07 | -133418000000 |
| Sep-07 | -135949000000 |
| Dec-07 | -135977000000 |
| Mar-08 | -138295000000 |
| Jun-08 | -142605000000 |
| Sep-08 | -152257000000 |
| Dec-08 | -155609000000 |
| Mar-09 | -159685000000 |
| Jun-09 | -156598000000 |
| Sep-09 | -156330000000 |
| Dec-09 | -153842000000 |
| Mar-10 | -152424000000 |
| Jun-10 | -154495000000 |
| Sep-10 | -146289000000 |
| Dec-10 | -142898000000 |
| Mar-11 | -126218000000 |
| Jun-11 | -130550000000 |
| Sep-11 | -140663000000 |
| Dec-11 | -143143000000 |
| Mar-12 | -142532000000 |
| Jun-12 | -145150000000 |
| Sep-12 | -145995000000 |
| Dec-12 | -149560000000 |
| Mar-13 | -147518000000 |
| Jun-13 | -148719000000 |
| Sep-13 | -147244000000 |
| Dec-13 | -144969000000 |
| Mar-14 | -150719000000 |
| Jun-14 | -150662000000 |
| Sep-14 | -151474000000 |
| Dec-14 | -154648000000 |
| Mar-15 | -150372000000 |
| Jun-15 | -145068000000 |
| Sep-15 | -149955000000 |
| Dec-15 | -149223000000 |
| Mar-16 | -155191000000 |
| Jun-16 | -159343000000 |
| Sep-16 | -164352000000 |
| Dec-16 | -153049000000 |
| Mar-17 | -147635000000 |
| Jun-17 | -149665000000 |
| Sep-17 | -149251000000 |
| Dec-17 | -149718000000 |
| Mar-18 | -150240000000 |
| Jun-18 | -154824000000 |
| Sep-18 | -157239000000 |
| Dec-18 | -170317000000 |
| Mar-19 | -164767000000 |
| Jun-19 | -168256000000 |
| Sep-19 | -172848000000 |
| Dec-19 | -171362000000 |
| Mar-20 | -179673000000 |
| Jun-20 | -180651000000 |
| Sep-20 | -178594000000 |
| Dec-20 | -180273000000 |
| Mar-21 | -166361000000 |
| Jun-21 | -157272000000 |
| Sep-21 | -166561000000 |
| Dec-21 | -164621000000 |
| Mar-22 | -163191000000 |
| Jun-22 | -184762000000 |
| Sep-22 | -194920000000 |
| Dec-22 | -194939000000 |
| Mar-23 | -189203000000 |
| Jun-23 | -193664000000 |
| Sep-23 | -197860000000 |
| Dec-23 | -209633000000 |
The increase in New Zealand’s international assets was due to:
- $10.3 billion net inflow from financial account assets transactions
- $4.1 billion decrease due to exchange rate changes
- $4.5 billion increase due to financial derivative valuation changes
- $7.8 billion increase due to market price changes
- $4.3 billion increase due to other valuation changes.
The increase in New Zealand’s international liabilities was due to:
- $2.6 billion net inflow from financial account liabilities transactions
- $2.2 billion decrease due to exchange rate changes
- $1.4 billion increase due to financial derivative valuation changes
- $7.0 billion increase due to market price changes
- $5.3 billion increase due to other valuation changes.
Net external debt
Net external debt (international assets and liabilities excluding equity and financial derivatives) widened by $12.9 billion during the December 2023 quarter, to reach $201.3 billion (49.7 percent of GDP) at 31 December 2023.
The increase in external debt was a result of external debt increasing $9.6 billion and external lending decreasing $3.3 billion.
| Year ended in quarter | Net international investment liability position (%) | Net external debt (%) |
| Dec-03 | 67.9 | 60.3 |
| Mar-04 | 69.6 | 61.1 |
| Jun-04 | 67.5 | 60.9 |
| Sep-04 | 70.5 | 61.8 |
| Dec-04 | 72.9 | 65.3 |
| Mar-05 | 71.7 | 64.9 |
| Jun-05 | 71.1 | 64.9 |
| Sep-05 | 73.5 | 67.6 |
| Dec-05 | 75.0 | 70.8 |
| Mar-06 | 72.6 | 71.7 |
| Jun-06 | 72.3 | 71.6 |
| Sep-06 | 75.1 | 74.4 |
| Dec-06 | 77.3 | 74.7 |
| Mar-07 | 75.4 | 74.3 |
| Jun-07 | 76.0 | 75.0 |
| Sep-07 | 75.7 | 76.6 |
| Dec-07 | 74.2 | 74.9 |
| Mar-08 | 74.1 | 75.3 |
| Jun-08 | 75.5 | 79.3 |
| Sep-08 | 80.5 | 83.7 |
| Dec-08 | 82.1 | 84.1 |
| Mar-09 | 84.3 | 83.9 |
| Jun-09 | 82.7 | 82.1 |
| Sep-09 | 82.0 | 81.5 |
| Dec-09 | 80.2 | 80.8 |
| Mar-10 | 78.4 | 80.0 |
| Jun-10 | 78.5 | 80.5 |
| Sep-10 | 73.5 | 75.7 |
| Dec-10 | 70.9 | 74.8 |
| Mar-11 | 62.1 | 66.6 |
| Jun-11 | 63.5 | 65.2 |
| Sep-11 | 67.5 | 68.6 |
| Dec-11 | 67.8 | 68.0 |
| Mar-12 | 66.9 | 66.2 |
| Jun-12 | 67.5 | 66.7 |
| Sep-12 | 67.7 | 66.4 |
| Dec-12 | 69.3 | 67.6 |
| Mar-13 | 67.8 | 65.6 |
| Jun-13 | 68.0 | 65.1 |
| Sep-13 | 66.2 | 62.8 |
| Dec-13 | 63.6 | 61.1 |
| Mar-14 | 64.7 | 58.9 |
| Jun-14 | 63.6 | 58.8 |
| Sep-14 | 63.2 | 58.4 |
| Dec-14 | 64.2 | 58.3 |
| Mar-15 | 62.0 | 57.0 |
| Jun-15 | 59.1 | 56.2 |
| Sep-15 | 60.3 | 55.4 |
| Dec-15 | 59.3 | 54.3 |
| Mar-16 | 60.8 | 54.9 |
| Jun-16 | 61.6 | 54.3 |
| Sep-16 | 62.7 | 57.4 |
| Dec-16 | 57.4 | 53.8 |
| Mar-17 | 54.4 | 53.0 |
| Jun-17 | 54.3 | 52.5 |
| Sep-17 | 53.2 | 52.6 |
| Dec-17 | 52.3 | 51.7 |
| Mar-18 | 51.7 | 51.0 |
| Jun-18 | 52.4 | 51.2 |
| Sep-18 | 52.5 | 51.4 |
| Dec-18 | 56.3 | 51.1 |
| Mar-19 | 53.8 | 49.3 |
| Jun-19 | 54.2 | 49.2 |
| Sep-19 | 54.9 | 49.6 |
| Dec-19 | 53.6 | 47.9 |
| Mar-20 | 55.6 | 44.2 |
| Jun-20 | 56.9 | 46.1 |
| Sep-20 | 55.7 | 47.6 |
| Dec-20 | 55.7 | 48.1 |
| Mar-21 | 50.7 | 48.0 |
| Jun-21 | 45.9 | 46.5 |
| Sep-21 | 48.1 | 47.8 |
| Dec-21 | 46.6 | 49.6 |
| Mar-22 | 45.5 | 47.4 |
| Jun-22 | 50.8 | 50.0 |
| Sep-22 | 52.2 | 50.1 |
| Dec-22 | 51.2 | 47.5 |
| Mar-23 | 48.7 | 46.4 |
| Jun-23 | 49.0 | 47.3 |
| Sep-23 | 49.3 | 46.9 |
| Dec-23 | 51.7 | 49.7 |
More data
Use Infoshare for balance of payments time series:
Subject category: Economic indicators
Group: Balance of payments – BOP
Group: International investment position – IIP
Definitions and metadata
Balance of payments – DataInfo+ details the general methodology used to produce balance of payments statistics.
Balance of payments concepts – DataInfo+ provides the definitions of terms used in this release.
Technical enquiries
Gareesh Madhas
03 964 8363
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ISSN 1178-0215
Next release
Balance of payments and international investment position: March 2024 quarter will be released on 19 June 2024.
