New Zealand's balance of payments worsen

Special Report:Global Financial Crisis

WELLINGTON, Dec. 22 (Chinese media) -- New Zealand's payments position with the rest of the world worsened by about 500 million NZ dollars (288 million U.S. dollars) in the last quarter of 2008, Statistics New Zealand said on Monday.

The balance of payments measures the value of New Zealand's international dealings, including goods, services and the transfer of investment income.

Statistics New Zealand said high prices for petrol and petrol products boosted the current account deficit for the year to the end of September to 15.5 billion NZ dollars.

The deficit is equal to 8.6 percent of the economy, up from 8.4percent at the end of the April-June quarter, and one of the highest in the developed world.

Economists said New Zealand has run higher deficits in the past and foreign investors show no sign - yet - of passing over the country for other destinations.

ASB chief economist Nick Tuffley said the current account deficit still compares favorably to 2006 when it was about 9.3 percent of GDP. Tuffley expects it will get close to 9 percent early next year before declining.

New Zealand is already in recession. Latest Gross Domestic Product figures are due to be issued on Tuesday. They are expected to show the economy has contracted for a third successive quarter.