Year’s Deficit £18.9m

Press, Volume CVI, Issue 31119, 23 July 1966, Page 3

Year’s Deficit £18.9m

(N.Z. Press Association) WELLINGTON, July 22. During the year ended June, 1966, receipts from exports exceeded payments for imports by £24.6 million and there was a net deficit of £78.8 million bn invisible transactions. On current account there was a deficit of £54.2 million. On capital account, largely because of the use of the resources of the International Monetary Fund, there was a net inflow of £35.3 million.

Thus the over-all deficit was £18.9 million, says the Reserve Bank. Compared with the previous June year export receipts rose by £29.4 million to the record level of £401.5 million. Receipts from all dairy products increased by £3.9 million to £101.4 million in spite of a fali of £2.0 million to £53.4 million in receipts from butter. There were also substantial rises in receipts from meat (£3.7 million).

Import payments, compared with those for the previous year, rose by £46.2 million to the record level of £376.9 million. Payments for Government imports were £4.5 million higher and payments for private imports increased by

£41.8 million to £339.7 million. Thug on trade transactions the surplus fell from £41.4 million to £24.6 million.

Invisible receipts were £2.7 million higher than those for the year ended June, 1965, but this rise was more than offset by an increase of £13.0 to £121.4 million in invisible payments. As a result the net deficit on invisible transactions rose by £10.3 million to £78.8 million. The fall of £16.8 million n the surplus of trade transactions, together with the increase of £10.3 million in the deficit on invisible transactions, caused an increase of £27.1 million to £54.2 million in the deficit on current account.