New Zealand’s Q1 current account balance showed a smaller surplus than market expected at NZ$0.244b (mkt NZ$1b) and on an annual basis, current account deficit widens to NZ$8.1b at 3.1% of GDP, from NZ$7.2b at 2.8% of GDP in Q4, explains the research team at TDS.
“The smaller Q1 surplus was attributed to the lower goods and services surplus given higher imports. REINZ house sales dipped –18.4%/y from a –31.0%/y last month in April. Also food prices rose 2.4% in May. While weather may have driven these moves, it does suggest upside risk for Q2 CPI, nudging close to 2%.”