WELLINGTON (Reuters) - New Zealand posted a wider-than-expected current account deficit in the fourth quarter on the back of aircraft imports and robust earnings by foreign firms on local investments, official data showed on Wednesday.
On a seasonally adjusted basis, the quarterly deficit was NZ$1.951 billion ($1.43 billion), up from NZ$1.544 billion in the previous quarter.
The actual quarterly deficit was NZ$2.77 billion in the three months to December, compared to analysts' expectations of a NZ$2.4 billion deficit.
"The ... increase in the deficit was mainly driven by New Zealand importing aircraft and other transport equipment, and crude oil," said Statistics New Zealand international statistics senior manager Daria Kwon in an emailed research note.
The New Zealand dollar <NZD=D4> edged down to $0.7324 in the wake of the release from around $0.7333.
New Zealand's relatively strong economy also drove up the deficit as overseas investors' incomes from local investment grew at a greater pace than New Zealanders' earnings from their investments abroad.
"The main surprise for us was a surge in the profits of overseas-owned firms in New Zealand. This is a positive indication of the strength of domestic demand," said Michael Gordon, senior economist at Westpac Bank.
The results were unlikely to alter the stance of the Reserve Bank of New Zealand, which has vowed to keep its official cash rate (OCR) at a record low of 1.75 percent, possibly for years, as it works to boost inflation.
"There are no implications from this release for our GDP or OCR view," said Nathan Penny, economist at ASB Bank.
Fourth-quarter gross domestic product figures are due to be released on Thursday, in which analysts widely expect quarterly growth to have picked up the pace to 0.7 percent.
The annual deficit to December was NZ$7.722 billion, equal to 2.7 percent of gross domestic product.
(Reporting by Charlotte Greenfield; Editing by James Dalgleish)
