Annual current account deficit widens to $33.8 billion

The annual current account deficit was $33.8 billion (8.9 percent of gross domestic product (GDP)) in the year ended 31 December 2022. This was $12.7 billion wider than in the year ended 31 December 2021 (6.0 percent of GDP), according to figures released by Stats NZ today.

This is the largest annual current account deficit to GDP ratio since the series began in March 1988. The largest prior to the COVID pandemic was 7.8 percent of GDP in December 2008, during the global financial crisis.

A current account deficit reflects that we are spending more than we are earning overseas. The size of the current account balance in relation to GDP shows its significance in the context of New Zealand’s overall economy.