Current account deficit $4.6 billion for the March 2026 quarter

New Zealand’s seasonally adjusted current account balance widened by $100 million to a deficit of $4.6 billion in the March 2026 quarter, according to figures released by Stats NZ today.

“The current account balance records the value of New Zealand’s transactions with the rest of the world in goods, services, and income,” general manager and macroeconomic spokesperson Jason Attewell said.

“New Zealand has a current account deficit when we spend more than we earn from our transactions with the rest of the world.”

The goods deficit widened by $323 million in the March 2026 quarter. This was the main contributor to the widening current account deficit.

The services balance was a surplus of $33 million in the March 2026 quarter. The primary income deficit narrowed by $219 million in the same period.

Goods balance widens

The seasonally adjusted goods deficit was $1.1 billion in the March 2026 quarter, following a deficit of $757 million in the December 2025 quarter.

Goods imports increased $680 million (3.2 percent) to $22.1 billion, led by a rise in mechanical and machinery equipment. Petroleum and petroleum products fell when compared with the December 2025 quarter.

“The conflict in the Middle East started towards the end of the March 2026 quarter and had a minimal impact on fuel imports. We expect any impact on prices or volumes of fuel imports to be reflected in the June 2026 quarter,” Attewell said.

Goods exports increased $356 million (1.7 percent) to $21.0 billion, led by rises in fruit and meat while dairy fell.

Services balance narrows and remains in surplus

In the March 2026 quarter, the seasonally adjusted services balance was a surplus of $33 million, compared with a surplus of $48 million in the December 2025 quarter.

Services exports increased by $321 million (3.5 percent) to $9.4 billion, while services imports increased by $336 million (3.7 percent) to $9.4 billion.

Travel services led the rise in services exports in the March 2026 quarter, up $160 million (3.3 percent) to $5.0 billion, compared with the December 2025 quarter.

International trade: March 2026 quarter has more information on imports and exports of goods and services between New Zealand and our trading partners.

Primary income deficit narrows

In the March 2026 quarter, the primary income deficit was $3.3 billion compared with $3.5 billion in the December 2025 quarter.

The primary income deficit is the difference between the income New Zealand earns from its investments overseas and the outflow of income from foreign investment in New Zealand.

New Zealand’s investors earnings from their investments overseas fell $364 million (8.1 percent) to $4.1 billion in the March 2026 quarter, when compared with the December 2025 quarter. Foreign investors earnings from investments in New Zealand fell $603 million (7.7 percent) to $7.2 billion.

International investment position and financial account

New Zealand’s net international liability position was $193.1 billion at 31 March 2026, $1.8 billion lower than $194.9 billion at 31 December 2025.

In the March 2026 quarter, the value of New Zealand’s international assets increased by $22.6 billion (4.7 percent) to $504.8 billion. Meanwhile, New Zealand’s liabilities to the rest of the world increased by $20.9 billion (3.1 percent) to $697.9 billion.

The increases in both asset and liability positions during the quarter were mostly due to financial account transactions, which includes buying and selling of shares and borrowing and lending of funds.

Annual current account deficit $16.3 billion

New Zealand’s annual current account deficit was $16.3 billion (3.6 percent of gross domestic product (GDP)) in the year ended 31 March 2026.

This compares with a $16.0 billion deficit in the year ended 31 December 2025 (3.6 percent of GDP).