New Zealand recorded a record current account surplus in the first quarter, as exports such as meat and dairy drove the goods balance to an all-time high and the country enjoyed spending by an inflow of overseas visitors.
The current account surplus was $1.41 billion in the three months ended March 31, from a revised deficit of $1.5 billion in the fourth quarter of 2013. The annual deficit was $6.3 billion, or 2.8 per cent of gross domestic product, matching the level of March 2011, from a revised annual gap of $7.6 billion, or 3.4 per cent of GDP, three months earlier.
The figures about matched economists' expectations in a Reuters survey of a quarterly surplus of $1.3 billion and annual deficit of $6.4 billion. The surplus in the latest quarter compares to a surplus of just $107 million in the same period last year, when drought disrupted farm output.
Global supplies of dairy products have come more into balance this year, and prices have retreated from their highs in recent months. The New Zealand dollar recently traded at 86.53 US from 86.52 cents immediately before the release.