NZ Exports Dodge Oil Shock with Smaller Deficit than Expected

New Zealand's external deficit has been revised to a smaller figure than previously thought. The current account deficit stood at 3.2% of GDP in the year to June, down from the 3.6% initially reported for the annual deficit in the March quarter.

The market consensus had estimated the annual deficit to be 3.8%, while the Reserve Bank of New Zealand (RBNZ) projected 3.9%. The actual figure fell below these expectations, at 3.0% of GDP.

This development is significant as it comes ahead of a potential oil price shock that had been expected to widen the deficit further.