1965 Deficit £12.2m.

Press, Volume CV, Issue 30978, 7 February 1966, Page 14

1965 Deficit £12.2m.

(New Zealand Press Association) WELLINGTON, February 4. New Zealand finished the 1965 calendar year with a deficit of £12.2 million in overseas exchange transactions, according to a Reserve Bank report issued today.

The deficit compares with a surplus of £3 million in 1964, a deficit of £4.5 million in 1963 and a surplus of £12.4 million.

As a result of the year's transactions the net overseas assets of the banking system at the end of the year were £51.3 million compared with £63.9 million on December 31, 1964.

There was a surplus ot £24.6 million on visible trade and of £35.8 million (including a drawing of £22.3 million from the International Monetary Fund) on capital transactions. These surpluses amounting to £60.4 million were more than offset by a deficit of £72.6 million on invisible items.

There was a current account deficit of £48.0 million, compared with a surplus of £l.O million the previous year. Export receipts fell by £10.3 million from the previous year largely through a drop of £23.6 million in the price of wool. Meat receipts rose by £4.9 million to a new record of £108.5 million. Receipts for most other principal exports either rose or were stable, an exception being a drop of £.5 million in receipts for butter. Import payments in 1965 were £31.6 million higher than in 1964; £26.2 million of this increase occurred in payments for private imports and £5.4 million more was paid for Government imports, £24 million of the increase in private import payments occurred in the second half of the calendar year.

RECEIPTS Exports 1965 £m 382.7 1964 £m 393.0 1963 £m 356.4 Other current receipts ... 42.3 38.0 32.2 Capital receipts 80.5 36.5 16.6 Total receipts 505.5 467.5 405.2 PAYMENTS Imports — Private 321.9 295.7 279.0 Government 36.2 30.8 25.6 Other current payments ... 114.9 103.6 94.2 Capital payments 44.8 34.5 10.9 Total payments ... 517.7 464.6 409.7 BALANCES Trade +24.6 +66.5 +51.7 Invisible .. —72.6 —65.6 —61.9 Current account .. —48.0 + 1.0 —10.2 Capital account .. +35.8 +2.0 +5.7 Over-all .... .. —12.2 +3.0 —4.5 EXPORT RECEIPTS Butter 55.9 56.4 54.6 Cheese 23.0 23.0 20.1 Other dairy products 20.5 17.1 12.5. Meat 108.5 103.9 94.8 Wool 111.5 135.1 124.9 Other animal products ... 30.8 28.5 24.8 Forest products 12.8 12.9 11.7 Other primary products ... 13.2 11.6 9.4 Miscellaneous 6.6 4.6 3.5 TOTAL 382.7 393.0 356.4