Investment deficit swamps trade surplus.

(From New Zealand Herald)

Byline: BRIAN FALLOW, economics editor

27.09.2002 The current account deficit widened in the June quarter, although much of the deterioration reflected the improved profitability of foreign-owned companies in New Zealand.

The deficit, which represents the difference between what New Zealand earns from the rest of the world through trade, tourism and investment and what the rest of the world earns from us, had been improving through 2000 and 2001. In the year ended March, it was $2.6 billion, equivalent to 2.2 per cent of gross domestic product, the best that ratio has been for 13 years.

But yesterday's figures …