New Zealand posted a current account deficit of NZD 0.97 billion in Q2 2025, significantly narrowing from a NZD 3.3 billion shortfall in the same period last year and well below market expectations of NZD 2.7 billion. The goods balance surplus widened sharply to NZD 2.67 billion from NZD 0.53 billion a year earlier, while the services account deficit increased to NZD 1 billion from NZD 0.66 billion. Meanwhile, the primary income deficit narrowed to NZD 2.3 billion from NZD 2.7 billion, and the secondary income gap fell to NZD 0.37 billion from NZD 0.49 billion. On an annual basis, the current account deficit for the year ended June 30, 2025, stood at NZD 16.0 billion, improving from NZD 18.3 billion in the year ended March 31, 2025. Overall, the data points to a marked improvement in New Zealand’s external position, driven largely by stronger goods exports and narrower income deficits.