[NZ DATA REVIEW]

[NZ DATA REVIEW] NZ's actual current account deficit managed to narrow in to -NZ$4.03 bln over the qtr, right in line with the mkt consensus but following a revised wider -NZ$6.013bn deficit in Q3. In the year to Dec, the current account balance ballooned to a record high gap of -NZ$16.07 bln versus a revised wider -NZ$15.528bn deficit in Q3, but also fared a tad better than forecasts on a -NZ$16.06bln gap. Resultantly, the deficit worsened to -8.9% of GDP from Q3's read of -8.6%; but came in less than the mkts -9.0% expectation. Once again, NZ's external accounts were seen coming under pressure from a deteriorating trade balance and an ever present large invt income deficit. Nonetheless; the data was not that horrific as feared and could well represent the peak of this cycle; as the global recession weakens import demand and reduces interest payments on NZ's chunky overseas debt.