£47.5 million Deficit In Overseas Trading

Press, Volume C, Issue 29506, 6 May 1961, Page 10

£47.5 million Deficit In Overseas Trading

(New Zealand Press Association)

WELLINGTON, May 5. During the year ended March 31, 1961. there was a deficit of £47.5 million in New Zealand’s overseas exchange transactions compared with a surplus of £11.900.000 in the previous March year, states the Reserve Bank in a review of the payments [situation. The surplus in the 1960 March year was achieved after Government net investment overseas of £l6 million and official debt repayment of £11.600.000. but the deficit in the 1961 March vear was not significantly influenced in total by Government capital transactions. On current account there was a deficit of £49.700.000 compared with a surplus of £31.400.000 for the previous March year. Export income fell by

£17.700.000 caused mainly by falls of £22 million in receipts for butter (caused by both lower average prices in London and smaller quantities sold) and £4.900.000 in receipts for w’ool. Rises in receipts for meat (£8 million) and other exports <£2.600.000*. partly offset these falls. Cheese receipts fell by £1.400.000. the effect of increased sales during the year being more than offset by a fall in the prices obtained. Receipts other 'than for exports increased by £9.500.000 compared with the previous year, mainly because of an increase of £8.200.000 in official capita! receipts. This included the realisation of London investmen's in October. 1960, to meet a loan repayment of £6.300.000 due in London on October 15 Total payments increased by £5l million compared with the previous year. Payments for private imports increased by £57.600.000 <26 5 per cent J to a record level of £274.700.000. while payments for Government imports were almost unchanged. Other current payments increased by £9.400.000. Higher expenditure on travel, mainly a result of a greater number of people travelling, accounted for £4.300.000 of this increase, the remainder being spread over many "invisible” items. Official capita! repayments were £l9 million lower than in the 1960 March year because of the Government in-

vestment and loan repayments in that year. Private capital transactions resulted in net receip's of £2.500.000 The over-all pattern of transactions with the main currency areas has not varied markedly from that of the previous year, the statement says. The currency analysis for the March year shows that there were deficits of £82.000.000 with the sterling area, and of £3.200.000 with the dollar area. There was a surplus of £37.700.000 with other non-sterling countries. Receipts from the dollar area were practically unchanged from the previous year. Though total receipts showed little change between the first quarters of 1960 and 1961. a rise of £ 19.200,060 in payments caused a deficit of £11,700.000 in 1961 compared with a surplus of £8.300.000 in the corresponding period of 1960.