Balance of payments and international investment position: December 2025 quarter

Balance of payments records the value of the country's transactions with the rest of the world. It shows changes in financial claims on, and liabilities to, the rest of the world. International investment position is a snapshot of the country's financial assets and liabilities.

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Key facts

Figures compare the December 2025 quarter with the September 2025 quarter (unless otherwise stated).

• New Zealand's seasonally adjusted current account deficit was $4.6 billion.
• The current account deficit for the year ended December 2025 narrowed to $16.3 billion (3.7 percent of gross domestic product (GDP)) compared with a $20.0 billion deficit for the December 2024 year (4.7 percent of GDP).

At 31 December 2025:

• New Zealand's net international liability position narrowed to $197.2 billion, compared with $202.9 billion at 30 September 2025.

In the December 2025 quarter, the:

• seasonally adjusted goods deficit widened to $866 million
• seasonally adjusted services surplus was $122 million
• primary income deficit widened to $3.7 billion
• financial account recorded a net inflow of $3.8 billion.

Current account

New Zealand's seasonally adjusted current account balance was a $4.6 billion deficit in the December 2025 quarter, $857 million wider than the September 2025 quarter deficit.

The widening of the seasonally adjusted current account deficit was due to:

• $664 million widening of the primary income balance deficit
• $321 million widening of the goods deficit
• $91 million widening of the secondary income deficit
• $219 increase in the services balance.

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The annual current account deficit in the year ended 31 December 2025 was $16.3 billion (3.7 percent of GDP).

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Goods and services

In the December 2025 quarter, seasonally adjusted goods exports increased by $394 million while imports increased by $716 million. This resulted in a widening of the goods deficit by $321 million, to $866 million.

The increase in goods exports was led by meat and edible offal. The increase in imports was led by petroleum and products, and electrical and mechanical machinery and equipment.

The seasonally adjusted services balance for the December 2025 quarter was a surplus of $122 million. This was a change of $219 million from a deficit of $97 million in the September 2025 quarter. Services reported deficits in the first three quarters of 2025.

Services exports increased by $594 million (7.0 percent), to $9.1 billion, led by travel exports. Services imports increased by $375 million (4.4 percent), to $9.0 billion, led by travel and transportation.

Primary and secondary income

Primary income flows between New Zealand and the rest of the world represent income earned from investments and compensation of employees.

The primary income deficit was $3.7 billion in the December 2025 quarter, $664 million wider than the previous quarter. This was due to:

• $336 million decrease in income earned from New Zealand's investment abroad
• $349 million increase in income earned by foreign investment in New Zealand.

Income earned from New Zealand's investment abroad decreased $336 million to $4.4 billion in the December 2025 quarter. This was due to:

• $442 million decrease in portfolio investment income
• $45 million decrease in other investment income
• $28 million decrease in reserve assets income
• $180 million increase in direct investment income.

Income earned by foreign investment in New Zealand increased $349 million to $7.9 billion in the December 2025 quarter. This was driven by:

• $783 million increase in income earned on direct investment
• $314 million decrease in income earned on portfolio investment
• $121 million decrease in income earned on other investment.

Secondary income records the provision of goods, services, or financial instruments between New Zealand and the rest of the world without an equivalent economic value received in return. This includes foreign aid, remittances, and taxes on income and wealth in or out of New Zealand.

The secondary income deficit widened by $90 million to $227 million in the December 2025 quarter.

Financial account balance

The financial account records transactions in financial assets and liabilities between residents and non-residents. It measures transactions that increase or decrease New Zealand investment abroad and foreign investment in New Zealand.

The financial account recorded a net $3.8 billion inflow of funds in the December 2025 quarter, which partly funded the current account deficit. This was made up of a $2.3 billion net withdrawal of New Zealand investments abroad and a $1.5 billion net inflow of foreign investment in New Zealand.

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New Zealand investment abroad

New Zealand investment abroad recorded a $2.3 billion net inflow in the December 2025 quarter, as New Zealanders decreased assets held with non-residents.

The net investment inflow was driven by inflows of funds reducing assets by:

• $7.2 billion in other investment
• $3.8 billion receipts from the settlements of financial derivative assets.

The investment inflows were partly offset by outflows increasing assets abroad of:

• $4.9 billion in portfolio investment
• $2.6 billion in direct investment
• $1.2 billion in reserve assets.

Foreign investment in New Zealand

Foreign investment in New Zealand recorded a $1.5 billion net inflow in the December 2025 quarter, as New Zealand increased its liabilities with the rest of the world.

The net investment inflow was driven by inflows increasing liabilities of:

• $6.6 billion in portfolio investment
• $2.4 billion in direct investment.

This was partly offset by an outflow decreasing liabilities of $6.0 billion in other investment and $1.5 billion payments for settlements of financial derivative liabilities.

International investment position

The net international investment position represents the difference between New Zealand's assets and liabilities with the rest of the world.

New Zealand's net international investment liability position at 31 December 2025 was $197.2 billion (44.3 percent of GDP). This was $5.7 billion narrower than the $202.9 billion (46.2 percent of GDP) liability position at 30 September 2025.

At December 2025 compared with September 2025, the value of New Zealand's international assets rose $2.0 billion to $480.5 billion, while the value of liabilities fell $3.8 billion to $677.8 billion.

The value of New Zealand's reserve assets increased to $48.7 billion in the December 2025 quarter, an increase of $1.3 billion from the previous quarter.

The depreciation of the New Zealand dollar against major currencies and increases in share prices across major markets, impacted both New Zealand's international assets and liability position.

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The increase in New Zealand's international assets was:

• $6.4 billion increase due to market price changes
• $1.5 billion increase in financial derivative valuation changes
• $565 million decrease due to other valuation changes
• $3.1 billion decrease due to exchange rate changes
• $2.3 billion net inflow from financial account assets transactions.

The increase in New Zealand's international liabilities was:

• $1.5 billion net inflow from financial account liabilities transactions
• $867 million increase due to other valuation changes
• $711 million increase due to exchange rate changes
• $5.7 billion decrease due to market price changes
• $1.1 billion decrease due to financial derivative valuation changes.

Net external debt

Net external debt (international assets and liabilities excluding equity and financial derivatives) widened by $6.9 billion during the December 2025 quarter, to reach $233.9 billion at 31 December 2025 (52.6 percent of GDP). This was a result of external debt increasing by $1.9 billion and external lending decreasing by $5.0 billion.

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More data

Use Infoshare for balance of payments time series:

Subject category: Economic indicators
Group: Balance of payments - BOP
Group: International investment position - IIP

Definitions and metadata

Balance of payments - DataInfo+ details the general methodology used to produce balance of payments statistics.

Balance of payments concepts - DataInfo+ provides the definitions of terms used in this release.

Media enquiries

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ISSN 1178-0215

Next release

Balance of payments and international investment position: March 2026 quarter will be released on 17 June 2026.