Balance of Payments.docx

7/25/2019 Balance of Payments.docx

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Balance of PaymentsThe current account deficit stood at 3.1% of GDP for the twelve months toSeptember 200 but had fluctuated in a ran!e of ".#% to .3% of GDP over

the previous five $ears. &e$ feature of 'ew (ealand)s current account deficitis the lar!e deficit on investment income* reflectin! 'ew (ealand)s net forei!n

liabilit$ position.

The investment income deficit increased between +une 200" and +une 200#*

resultin! in a widenin! current account deficit over the same period. Since late200#* the investment income deficit has narrowed mar&edl$* driven b$ lower

profits accruin! to overseas,owned firms operatin! in 'ew (ealand as a result

of wea& domestic tradin! conditions.

The !oods and services balance has varied due to the effects of drou!ht*

commodit$ price fluctuations* includin! oil price chan!es* some lar!e one,offimports and currenc$ movements* as well as 'ew (ealand)s demand for

imports and international demand for 'ew (ealand e-ports. The impact of the

stron!er currenc$ on e-port earnin!s and stron! domestic !rowth on import

demand* to!ether with an increase in the investment income deficit due to

stron! profits of forei!n,owned firms* led to the current account deficitreachin! .3% of nominal GDP in the $ear to 30 September 200.

/ore recentl$* however* the combination of narrowin! !oods and services

deficits and* in particular* a shrin&in! investment income deficit* led to thecurrent account deficit fallin! from #.% of GDP in December 200# to 3.1% of

GDP in September 200. The annual deficit is e-pected to have narrowed to

2.#% b$ the end of 200* reflectin! a further shrin&in! of the investmentincome deficit and e-ports !rowin! stron!er than imports. rom 2010* the

current account deficit is e-pected to widen as the pic&,up in domestic

demand flows throu!h to stron!er imports* while increased earnin!s for

overseas,owned firms result in a deterioratin! investment income deficit.

alance of pa$ments statistics are compiled b$ the Government followin!

principles set out b$ the / in the 4th edition of the alance of Pa$ments/anual.


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Balance of Payments

(dollars amounts in millions)Year ended 31 March

2005 2006 2007 2008(1) 200(1)

5urrent ccount

6-port receipts 31*11" 31*4#1 34*3 3#*20 ""*24

mport receipts 33*3"3 34*#4 3#*"" "0*414 "4*4"

/erchandise balance 72*22#8 7"*10"8 72*#2#8 71*8 71*338

Services balance 1*200 422 "33 1#" 71*118

nvestment income balance 7*3#"8 711*048 711*08 713*3"38 713*0348

Transfers balance 23 1"" " #2# 1

5urrent account balance 710*1208 71"*40"8 713*428 71"*12#8 71"*4#8

Deficit as % of GDP 7.8 7.08 7#.08 7.#8 7.8

inancial ccount 7net8

orei!n investment in '( 13*#0 10*"21 23*30 2*4 7#*#438

'( investment abroad 3*222 73*08 11*120 12*400 71*1228

9eserves 71"8 "*#40 *"" 4*3 7*"8

inancial account balance 10*"# 1"*211 12*240 1"*24 *2

5apital ccount


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Balance of Payments

(dollars amounts in millions)Year ended 31 March

2005 2006 2007 2008(1) 200(1)

alance of 5apital ccount 10# 7328 7"48 738 748

718 Provisional.

Balance of Payments

Sources: Statistics 'ew (ealand

Economic factors that aected NZ economy

nternational business and the !lobaleconom$need each other to thrive. ccordin! to

the nternational tradecommission the demand for !oods and services in the international

mar&et of china and ndia can onl$ sustain itself throu!h consumerism.national association

for business economics.
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The ;.S. econom$ leads the world in innovation and creativit$* so the

nternational Tradedministration 7T8 role is to stren!then the competitiveness of ;.S.

industr$ b$ promotin! trade and investmentto ensure fair trade throu!h the enforcement of

trade laws and a!reements. ed international tradin! ma&e up almost

ninet$ seven percent of ;.S. e-porters. The statistics show that the ;nited States e-ports

has increased from 22" billion to ?1.1 trillion in the past twent$ five $ears.

!conomic !ffects of "il mar#et

The on!oin! oil spill in the Gulf of /e-ico has catapulted a natural disaster response and

relief into the top issues in the countr$ because at 1#%* disaster response now trails onl$

the econom$ and unemplo$ment as the ;nited States) most important problem.

!conomic !ffects of $ousin% Mar#et

@ousin! mar&ets ti!hter credit and fallin! home prices top the reasons wh$ the econom$ is

in a recession* accordin! to 40 economists of the 'ational ssociation for usiness

6conomics. The result affects international trade mar&ets.

!conomic !ffects of &toc# Mar#et

The stoc& mar&et is also an economic indicator of how well the ;S econom$ is doin!. f

investors are losin! mone$ on shares the$ will be more hesitant to spend mone$A this can

contribute to a fall in consumer spendin!. Pension funds invest a si!nificant part of their

funds on the stoc& mar&et. Therefore* if there is a serious fall in share prices* it reduces the

value of pension funds. This means that future pension pa$outs will be lower.
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nternational trade is e-chan!e of capital* !oods* and services across international borders

or territories. n most countries* it represents a si!nificant share of !ross domestic product

7GDP8.


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Current account

The credit side of this account shows the e-port of !oods and services* investment income earned and*

under current transfers* the offsettin! entries to resources received b$ residents without pa$ment

reEuired.

The debit side shows the import of !oods and services* investment income paid and* under current

transfers* the offsettin! entries to resources supplied to forei!n residents without pa$ment reEuired.

To aid anal$sis* flows of !oods* services* income* and current transfers are cate!orised into ma=or t$pes

of transactions. n addition* certain balances are calculated. )balance) is the credits less debits for a

particular item or !roup of items. ne!ative number represents a deficit* while a positive number

represents a surplus.

alances are usuall$ in surplus or deficitA >ero balances are unusual. The balances are:

alance on !oods B !oods e-ports 7credits8 less !oods imports 7debits8.

alance on services B services e-ports 7credits8 less services imports 7debits8.

alance on income B income receipts 7credits8 less income pa$ments 7debits8.

alance on current transfers B current transfer inflows 7credits8 less current transfer outflows7debits8.

alance on !oods and services B !oods and services e-ports 7credits8 less !oods and servicesimports 7debits8.

alance on income and current transfers B income and current transfer inflows 7credits8 lessincome and current transfer outflows 7debits8.

alance on current account B the sum of the balance on !oods and services and the balance onincome and current transfers.

Conceptual adjustments to exports and imports of goods

5onceptual ad=ustments are made to the overseas merchandise trade statistics 7sourced from the 'ew

(ealand 5ustoms Service8 to compl$ with the oP convention of recordin! !oods in the current account.

n oP* e-ports and imports of !oods are recorded when ownership of the !oods passes from a resident

to a non,resident* or vice versa. chan!e of ownership is said to have occurred when Fthe two parties

7e-porter and importer8 record the transaction in their boo&s or accounts.F or merchandise trade

statistics* !oods are recorded as e-ports or imports when the$ cross a customs frontier.

The followin! ad=ustments are made to overseas merchandise trade data to meet oP recordin!

conventions:

!oods that cross the customs frontier without a chan!e in ownership are removed from importsand e-ports data B an e-ample of this is lar!e capital items imported or e-ported on anoperational lease

!oods that are sold on consi!nment are removed from trade data* as no chan!e of ownership hasoccurred

frei!ht and insurance char!es are removed from the value of imports of !oods* and reclassifiedas services

addin!subtractin! chan!es in oil stoc&s abroad.


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6-ports or imports that do not chan!e ownership are e-cluded from the overseas merchandise trade

statistics to determine the !oods component in oP. This ad=ustment is reflected under the headin! )oP

conceptual ad=ustments) in table " of this release. n e-ample of such an ad=ustment is when a lar!e

capital item is imported to 'ew (ealand on an operational lease. n such a case* the ownership of the

lar!e capital item has not chan!ed* so the value of it needs to be removed from merchandise trade

imports data where it was recorded as an import when it crossed the customs frontier.

Goods on consi!nment are !oods that are intended for sale but not actuall$ sold at the time that the$

cross the border of the e-portin! countr$. To meet oP recordin! convention* the value of !oods e-ported

on consi!nment is removed from the overseas merchandise trade e-ports in the Euarter the$ leave the

countr$* then added bac& into e-ports in the Euarter in which the !oods are actuall$ sold 7that is* when the

chan!e of ownership occurs8.

Seasonal adjustment and trend analysis

uarterl$ current account statistics are sub=ect to lar!e* short,term movements* both irre!ular and

seasonal* which ma&e the interpretation of trends in the ori!inal series difficult.

Seasonall$ ad=usted and trend series help to reveal the underl$in! behaviour of a series.


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receivedmade8. @owever* when it is not possible to separate pa$ments out on an accrual basis* oP can

sometimes receive data relatin! to multiple periods in one lump sum.


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omissions have occurred* since lar!e positive and ne!ative errors ma$ be offsettin!. Iffsettin! errors ma$

either be related or unrelated* resultin! from a measurement problem affectin! both sides or onl$ one side

of a transaction. Timin! differences in data reported b$ the different sources used to estimate the credit

and debit sides of a transaction ma$ result in positive and ne!ative errors and omissions offsettin! each

other in successive periods.

The followin! areas of &nown financial account undercovera!e ma$ contribute to the residual:

The primar$ data sources for the financial account and P are sample surve$s.


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Surve$s of 'ew (ealand resident enterprises conducted b$ Statistics '(. These surve$s operatewith the approval of the /inister of Statistics and their completion is therefore a compulsor$reEuirement as set out in the Statistics ct 14. These surve$s are directed at 'ew (ealand,resident enterprises that have been identified as bein! relevant to oP and P statistics.

Surve$s conducted b$ other entities. Some of the data used is purchased b$ Statistics '( fromother or!anisations that operate an appropriate surve$. Statistics '( has input into the desi!n of

these surve$s. Ine e-ample is the nternational Jisitors Surve$ operated b$ a mar&etin!compan$ for the /inistr$ of Tourism 7which supplies Euarterl$ data used in the measure ofe-ports of travel services in the current account8. nother e-ample is the uarterl$ /ana!edunds Surve$ 7/S8. This is a =oint 9'( and Statistics '( operation* which supplies data forthe current account component of income 7credit8* and the financial account and P componentsof portfolio investment* financial derivatives and other investment 7assets8.

dministrative data* for e-ample non,resident withholdin! ta- data from nland 9evenue and 'ew(ealand 5ustoms Service records of imports and e-ports* published b$ Statistics '( each monthas overseas merchandise trade statistics.

inancial mar&et information* includin! interest and e-chan!e rates and share prices. /uch ofthis information is ta&en from publicl$ available information sites.

alance of Pa$ments Eualit$ improvements

The current oP data Eualit$ pro=ects underwa$ include improvin! the covera!e and estimation of income

from:

compensation of emplo$ees

investment income

Statistics 'ew (ealand will release a paper detailin! these Eualit$ improvements before the data is

incorporated into the oP statistics.

Compensation of employees

5ompensation of emplo$ees includes income earned b$ individuals wor&in! in an econom$ other than

their own for a period of less than one $ear. The !ross income receivable 7b$ 'ew (ealand resident

individuals wor&in! abroad8 and pa$able 7to forei!n residents wor&in! in the 'ew (ealand econom$8 are

to be recorded in the income component of the current account statistics. 5urrentl$* Statistics '( does not

capture an$ data nor ma&e an$ estimates for this item.

9ecent wor& on sourcin! data to fill this measurement !ap has focussed on the followin! administrative

sources:

nland 9evenue Department)s 79D8 ta- data* specificall$ )overseas income) reported in the 93

7ndividual ta- return8 and the various 'ew (ealand sourced income reported b$ non,residents inthe 93'9 7'on,resident individual ta-pa$er return8. income pa$able to forei!n seasonal wor&ers in 'ew (ealand under the 9eco!nised Seasonal

6mplo$ment 79S68 scheme* operated b$ the Department of Kabour 7DoK8.

Statistics '( has a formal a!reement with the 9D to use 9D)s ta- data in Ifficial Statistics. This

a!reement allows the suppl$ of ta- data b$ the 9D to Statistics '(. The data supplied b$ the 9D is

sub=ect to strict confidentialit$ provisions and its use is limited to the production of Ifficial Statistics.


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93 ta- return

Statistics '( has been assessin! the suitabilit$ of usin! the )overseas income) reported in the 93 ta-

form b$ 'ew (ealand resident ta-pa$ers as a measure of income earned from overseas b$ resident

individuals. n e-amination of the 93 data shows that the reported )overseas income) include income

from various sources and t$pes 7such as income from provision of labour* investment* pension* ro$alt$etc8. The lac& of an$ disa!!re!ations of this data present classification challen!es for its inclusion in oP

statistics. Statistics '( is currentl$ evaluatin! options for the inclusion of this data into oP statistics.

93'9 ta- return

The 93'9 is a ta- form which reEuires declaration of 'ew (ealand sourced income b$ non,residents.

This form reEuires a brea&down of 'ew (ealand income into various t$pes such as interest*

dividends* salar$* and wa!es. Due to this brea&down* it ma$ be feasible to derive an estimate for

5ompensation of 6mplo$ee debits in 'ew (ealand)s oP statistics. nvesti!ation is on!oin! to further

understand the covera!e and Eualit$ attributes of this data.

6stimate of seasonal wor&ers in 'ew (ealand

Statistics '( has also been investi!atin! the estimation of income earned b$ forei!n wor&ers in 'ew

(ealand* in particular those wor&ers in the 9S6 scheme. nformation on the number of forei!n wor&ers in

the scheme and the avera!e $earl$ income earned b$ these wor&ers are bein! sourced from the

Department of Kabour 7DoK8. The DoK administers this scheme and has recentl$ carried out a stud$ on

the earnin!s of these wor&ers. The results of this stud$ are bein! used to derive an estimate for

compensation of emplo$ees in oP statistics.

Investment income undercoverage

;se of ta- data to improve investment income undercovera!e

n addition to the 93* Statistics '( has also been investi!atin! the suitabilit$ of the Foverseas incomeF

data captured in 9D ta- forms as a source for fillin! in the !aps in oP investment income statistics. The

relevant ta- forms under e-amination are:

9"* overseas income reported b$ companies

9* overseas income reported b$ 6states and Trusts

9* overseas income reported b$ 'ew (ealand Partnerships

9 L 9S* 'ew (ealand income attributed to non,residents.

The investi!ations reveal that the overseas income values reported in the ta- forms 9 L 9 arecurrentl$ not captured nor estimated for in oP statistics. This information will be incorporated into the

oP investment income data series. The details about classif$in! the income into investment and

instrument t$pes are still to be decided.

Statistics '( is investi!atin! the concept of usin! the reported overseas income in 9" and 'ew (ealand

income distributed overseas in 9 L 9S to estimate investment income of the non,surve$ed

population for inclusion in oP statistics.


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mprovements to interest estimates* and the surve$ Euestionnaire and !uide

Statistics '( has recentl$ reviewed the reportin! of interest in the uarterl$ nternational nvestment

Surve$ 7S8. This involved consultin! respondents about the data that the$ have provided* the

Euestions as&ed in the surve$* and the e-planations provided in the associated surve$ !uide. s a

conseEuence of this wor&* some chan!es have resulted in the interest data series* and will be publishedas part of the annual revisions with the +une 2010 Euarter oP and P release in September. lso*

chan!es have been made to the interest Euestions in the S and the relevant references in the !uide

updated. The improvements to the Euestionnaire and !uide will be introduced from the September 2010

Euarter.

nternational nvestment Position

The nternational nvestment Position 7P8 measures the stoc& 7or level8 of 'ew (ealand)s financial

assets and liabilities with the rest of the world at a particular point in time. t comprises 'ew (ealand)s net

international debt 7lendin! to non,residents less borrowin! from non,residents8 and net international

eEuit$ investment 7investment in shares abroad less forei!n investment in 'ew (ealand compan$shares8. net international debtor position means that international liabilities e-ceed international assets.

The oP and P statistics are closel$ related* with the former measurin! transaction flows and the latter

measurin! stoc& positions. The difference in the level of international financial assets and liabilities

between two points in time is due to: 718 the oP financial account transactionsA and 728 the other 7non,

transactional8 chan!es that occur durin! the period. 6-amples of the latter are revaluations* chan!es in

mar&et prices* chan!es in e-chan!e rates* and other chan!es such as writeoffs.

xc!ange rate and s!are index movements" #arc! $%&% 'uarter

comparison of the e-chan!e rates at 31 /arch 2010 and 31 December 200 showed that the 'ew(ealand dollar appreciated a!ainst the ritish pound and the euro* but depreciated a!ainst the ustralian

dollar* the ;nited States dollar* and the +apanese $en. n appreciation of the 'ew (ealand

dollar decreases the 'ew (ealand dollar value of forei!n currenc$ assets and liabilities within the P.

depreciation of the 'ew (ealand dollar has the opposite effect. ll ma=or sharemar&et inde-es e-cept

the @an! Sen! increased over the period from 31 December 200 to 31 /arch 2010. The value of 'ew

(ealand investors) overseas shareholdin!s increased with these increasin! share inde-es* while forei!n

investors) 'ew (ealand shares decreased in value despite the '(H40 increasin! sli!htl$ in the Euarter.

Presentation of nternational nvestment Position statistics

There are two wa$s of presentin! P statistics: the oP presentation and the balance sheet presentation.


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direct investment* portfolio investment* other investment* financial derivatives* and reserve assets.

orei!n investment in 'ew (ealand 7liabilities8 is classified in the same wa$* e-cept for reserve assets*

which are not applicable. The oP approach is the one recommended b$ the nternational /onetar$

und.

Balance s!eet presentation

This approach uses a balance sheet format to present 'ew (ealand)s international assets and liabilities.

The use of the balance sheet format enables presentation of assets and liabilities disa!!re!ated into:

!ross and net eEuit$ positions* overseas debt 7borrowin!8* lendin! abroad* and net overseas debt7table 108

borrowin! and lendin! disa!!re!ated b$ broad sector 7table 108* b$ instrument t$pe 7table 118* b$currenc$ in which the obli!ations are repa$able 7table 128* and b$ residual maturit$ 7table 138.

!e relations!ip bet*een t!e t*o presentations

lthou!h there are differences in the classification of some transactions between the balance sheet andthe oP presentation* it is still possible to reconcile some items. The eEuit$ positions in the oP

presentation for 'ew (ealand investment abroad sum to the eEuit$ fi!ure under international assets in the

balance sheet presentation. Similarl$* the eEuit$ positions in the oP presentation for forei!n investment

in 'ew (ealand sum to the eEuit$ fi!ure under international liabilities in the balance sheet presentation.

9eserve assets are treated the same wa$ in both presentations.

Kendin! and borrowin! in the balance sheet and oP presentations are treated differentl$ and will not

reconcile. ll lendin! in the balance sheet presentation is treated as an asset and all borrowin! treated as

a liabilit$. n the oP presentation for 'ew (ealand investment abroad* net lendin! b$ 'ew (ealand

enterprises is reported* and for forei!n investment in 'ew (ealand* net borrowin! b$ 'ew (ealand

subsidiaries is reported.

n the oP presentation* net lendin! refers to the total lendin! b$ 'ew (ealand parent enterprises to their

overseas subsidiaries* less an$ borrowin! b$ 'ew (ealand parent enterprises from their overseas

subsidiaries. 'et borrowin! refers to the total borrowin! b$ 'ew (ealand subsidiaries from their overseas

parent enterprise* less an$ lendin! b$ 'ew (ealand subsidiaries to their overseas parent.

s the oP presentation treats some borrowin! as ne!ative lendin! and some lendin! as ne!ative

borrowin!* the values of lendin! and borrowin! reported in the oP presentation will not reconcile with

those in the balance sheet presentation. or e-ample* prepaid inter,compan$ accounts with overseas

parent enterprises are viewed as lendin! usin! the balance sheet presentation* but as ne!ative borrowin!

usin! the oP presentation.

International debt and external debt statistics

s described above* net international debt comprises lendin! to non,residents less borrowin! from non,

residents. Debt is an actual current contractual obli!ation that reEuires pa$ment of principal andor

interest b$ the debtor at some point7s8 in the future. 5onversel$* eEuit$ ownership represents a claim over

the residual value of an enterprise.


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Table 10 of the oP and P release presents 'ew (ealand)s international balance sheet position* a

contributin! part of which is 'ew (ealand)s international debt. n table 10* !ross international debt is

termed )borrowin!). Statistics '()s measurement of international borrowin! differs from the /)s measure

of e-ternal debt as set out in the External Debt Guide 720038. The difference lies in the treatment of

financial derivative liabilit$ positions. The External Debt Guide e-cludes these positionsA whereas in table

10* measures of international lendin!* borrowin!* and net international debt include these positions.

The /)s External Debt Guide e-cludes financial derivative asset and liabilit$ positions because no

principal is reEuired to be repaid and interest is not accrued. n overdue obli!ation to settle a financial

derivative contract is treated in both the /)s !uide and the table 10 series* li&e an$ arrears* as a debt

liabilit$ because pa$ment is reEuired.

'ew (ealandMs e-ternal debt* lendin!* and net e-ternal debt can be derived from the data presented in

table 11. This table presents 'ew (ealand)s international financial assets and liabilities disa!!re!ated b$

instrument t$pe* where financial assets and liabilities eEuate to international lendin! and borrowin!*

respectivel$* in table 10. Derivin! e-ternal debt and e-ternal lendin! is done usin! table 11 data b$

deductin! from each of total international assets 7P.S438 and liabilities 7P.S4K38 the value of

financial derivative asset 7P.S48 and liabilit$ 7P.S4K8 positions* respectivel$A and usin! thead=usted totals of international financial assets 7e-ternal lendin!8 and liabilities 7e-ternal debt8 to calculate

net e-ternal debt.

The table below derives the net e-ternal debt position from table 11 data and compares it with the net

international debt position of table 10.

Calculating New Zealand's net external deb

Period

31 March 2009

31 December

NZ$(milli

Total international nancial lending

IIPQ.S!!"

#%#" &'%*

less nancial deri+ati+es IIPQ.S!!', *'%* -%

Eternal lending '&%- -%#*

Total international lia/ilities IIPQ.S!0" *%## *"%&"'

less nancial deri+ati+es IIPQ.S!0', *&%&' -'%'"#

Eternal de/t **%-*# **%-#

Net eternal de/t 1-&%*& 1-%*

Net international de/t IIPQ.S!!*2 1-'-%- 1-%-"


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3ierence4 net eternal de/t less net

international de/t

*%"*" -%&'

+ebt securities issued in Ne* ,ealand by overseas resident issuers

(-auri bonds)

Nauri bonds are debt securities issued in 'ew (ealand* in 'ew (ealand dollars* b$ non,resident issuers.

ccordin! to oP compilation principles* if a 'ew (ealand resident investor holds such bonds* then the

resident holder has a claim over the non,resident issuer. These holdin!s contribute to 'ew (ealand

investment abroad 7international assets8.


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forei!n investment in 'ew (ealand: other investmentA loans. This is the collateralised loan approach to

recordin! repoed securities. @owever* in the P* the repoed securit$ is misclassified to 'ew (ealand

investment abroadA other investmentA other instruments 7instead of to portfolio investment8A debt

securities. Statistics '( plans to improve the classification of the repoed securities within the financial

account at a future point in time.

chan!e in the treatment of Special Drawin! 9i!hts

The Special Drawin! 9i!ht 7SD98 is an interest,bearin! international reserve asset created b$ the / in

1 to supplement other reserve assets of member countries. The SD9 is not a currenc$ but is based

on a bas&et of international currencies comprisin! the ;nited States dollar* the +apanese $en* the euro*

and the ritish pound. t !ives the holder the potential claim on freel$ usable currencies of / members.

n SD9 allocation is a low cost wa$ of addin! to members) international reserves* allowin! members to

reduce their reliance on more e-pensive domestic or e-ternal debt for buildin! reserves. n the September

200 Euarter* the / implemented two allocations of SD9s to member countries. Globall$* these totalled

?2#3 billion. n Ictober 200* the / recommended that countries adopt the recordin! of SD9s on

the Balance of Payments Manualth edition 7P/8 basis.

rom September 200 Euarter onwards* 'ew (ealand)s oP and P statistics reflect the P/ treatment

of SD9s. The different statistical treatment of SD9s appl$in! P/4 and P/ is outlined below.

Treatment of SD9s under P/4:

SD9 holdin!s are recorded as an asset 7recorded in the 9eserve sset in table 2 )nternationalnvestment Position)8

no correspondin! liabilit$ position is recorded

no financial account transaction is recorded

chan!e in the SD9 position 7due to an allocation of SD98 is reflected in the 9econciliation

Statement as )Ither chan!es).

Treatment of SD9s under P/:

SD9 holdin!s are recorded as an asset 7recorded under 9eserve sset in table 2 )nternationalnvestment Position)8

an SD9 related lon!,term liabilit$ position is recorded in the P 7in table 2* under )orei!nnvestment in 'ew (ealand)* )Ither investment)* )Ither instruments)8

the allocation of SD9s is recorded as an asset transaction in the financial account 7table 8 under9eserve ssets

the SD9 related liabilit$ transaction is recorded in the financial account 7table * orei!nnvestment in 'ew (ealand)* )Ither nvestments)* )Ither instruments)8

the interest receivable on the SD9 holdin!s and interest pa$able on the SD9 allocation 7SD9related liabilit$8 are recorded in the current account 7tables 1 and 8.

9evisions to previous periods are small and will not be implemented at this sta!e. t is li&el$ that the

revisions will be incorporated when P/ is full$ implemented in 'ew (ealand)s alance of Pa$ments

and nternational nvestment Position statistics.


17/21

Difference between 9'()s and Statistics 'ew (ealand)s reserve

assets data 7December 200# to +une 200 Euarters8

The 9eserve an& of 'ew (ealand has refined the covera!e of assets that fall within 'ew (ealand)s

official reserve assets. .

The S* uarterl$ 'ominees* and /S are all sample surve$s. 6stimates for non,surve$ed

enterprises 7undercovera!e estimates8 are determined each $ear for the S and incorporated into the

published accounts. 'o estimate is made for surve$ undercovera!e in respect of the uarterl$ 'ominees

Surve$ 7which supplies data on forei!n portfolio eEuit$ investment in 'ew (ealand via resident

nominees8. nformation available from the eEuities mar&et indicates that the level of surve$

undercovera!e is ne!li!ible. The /S is a sample of principal 'ew (ealand fund mana!ers. 'o

estimate for /S undercovera!e is currentl$ included in the published tables. @owever* smaller fundmana!ers are surve$ed annuall$* and estimates of their funds under mana!ement are presented in the

footnotes to the tables coverin! international assets and liabilities.

The S is a Euarterl$ sample of appro-imatel$ 400 enterprises. The sample is intended to capture

appro-imatel$ 4 percent of the stoc& levels of the main P components. The amount b$ which the

Euarterl$ sample surve$ is estimated to undercover the population is derived from the nnual nternational

nvestment Surve$ 7S8. The S collects data as at 31 /arch each $ear from a population of

enterprises identified as bein! relevant to the oP financial account and the P* but not surve$ed in the

S. The S is intended to be a census ever$ three $ears and a sample surve$ in the interim $ears. The

results of the S are used to:

7i8 Provide P 7table 28 and international asset and liabilit$ 7tables 10 to 138 positions to supplement the

re!ular Euarterl$ sample surve$ 7S8. This estimate is &nown as the non,sampled estimate 7'S68 and is

added to the results of each Euarter)s S results and included in the published accounts. The S and

'S6 estimates of investment positions comprise 'ew (ealand)s measured international investment

positions.

7ii8 ;pdate the sample used in the re!ular Euarterl$ sample surve$ 7S8. To reduce the compliance load

faced b$ the smaller businesses that t$picall$ comprise the S population. The S Euestionnaire is an

abbreviated form of the S Euestionnaire.
http://rbnz.govt.nz/statistics/extfin/e1/data.htmlhttp://rbnz.govt.nz/statistics/extfin/e1/data.htmlhttp://www.stats.govt.nz/publications/govt-international-accounts/bop-sources-and-methods-2004.aspxhttp://www.stats.govt.nz/publications/govt-international-accounts/bop-sources-and-methods-2004.aspxhttp://www.stats.govt.nz/publications/govt-international-accounts/bop-sources-and-methods-2004.aspxhttp://www.stats.govt.nz/http://rbnz.govt.nz/statistics/extfin/e1/data.htmlhttp://www.stats.govt.nz/publications/govt-international-accounts/bop-sources-and-methods-2004.aspxhttp://www.stats.govt.nz/publications/govt-international-accounts/bop-sources-and-methods-2004.aspxhttp://www.stats.govt.nz/


18/21

'ote that in respect of 'S6 investment positions* the associated current account investment income flows

and financial account transactions are neither collected nor estimated.

Non-sampled estimate

Period New Zealand inestment abroad

NZ$(/illion)

5arch *& -.#

67ne *&B3ecem/er *& *.

5arch *# *.

67ne *# *.

Currency and maturity brea.do*ns of t!e non/sampled estimate

To improve the usefulness of the assets and liabilities data* Statistics '( has allocated the 'S6 across

the different currenc$ and residual maturit$ profiles. The allocation is reset each $ear in the release of

+une Euarter statistics. The allocation uses S data collected from non,ban& enterprises applied to the

results of the annual surve$. The assumption is that the behaviour of the 'S6 data is similar to that of the

non,ban& enterprises surve$ed in the S. The resultin! apportionment of 'S6 estimates is then added

to the S residual maturit$ and currenc$ totals.

0nnual #anaged Funds Survey

The nnual /ana!ed unds Surve$ 7/S8 is conducted =ointl$ b$ the 9'( and Statistics '( and has

collected data as at 31 December since 2001. The /S measures the stoc& of investment held 7both in

'ew (ealand and abroad8 b$ fund mana!ers who are not in the /S.

The results from the sample surve$s showed assets held abroad as follows:

"esults #rom t$e %&!

Period %s

3ecem/er *&

3ecem/er *

3ecem/er *'

3ecem/er *

3ecem/er *

3ecem/er *"


19/21

3ecem/er **

3ecem/er *-

The /S does not capture an$ financial account transaction flow or current account investment income

data. This data is not included in the P series of 'ew (ealand investment abroad. The data from the/S for portfolio investment abroad is shown in the P tables of this release as an addendum item. The

data is as at 31 December onl$.

n addition to providin! an estimate of investments held abroad b$ smaller 'ew (ealand fund mana!ers

and or!anisations* the surve$ data is used to ad=ust the sample population for the uarterl$ /ana!ed

unds Surve$. fter each /S c$cle* a review of the uarterl$ /ana!ed unds Surve$ sample

population is underta&en and where appropriate* lar!er /S respondents are added to the Euarterl$

sample.

n overall review of the surve$Ms results and an investi!ation into the feasibilit$ of ad=ustin! the data 7to

ta&e account of mar&et price and e-chan!e rate movements8 are planned* before the data series is

formall$ mi!rated into the 'ew (ealand P statistics. or further information on the /S* contact

Salendra Numar on 0" 31 "00 or email:bop.surve$sCstats.!ovt.n>.

'uity s!are!olding in overseas companies directly !eld by Ne*

,ealand individuals

/an$ 'ew (ealand individuals invest directl$ abroad and hold these overseas assets in their own custod$

or in the custod$ of an overseas entit$. Inl$ data relatin! to overseas financial assets of 'ew (ealand

enterprises* and those held b$ 'ew (ealand individuals and or!anisations where the investments are

underta&en b$ 'ew (ealand fund mana!ers* are reported in the oP and P statistics. To cover the !ap

7that is* between assets invested and held directl$8* Statistics '( has made estimates of the level ofindividuals) directl$,held overseas eEuities. The estimates are presented as an addendum item in the P

7table 28. This is because the estimation methodolo!$ relies on several &e$ assumptions that cannot* at

this sta!e* be full$ tested b$ reference to available data. 5han!es to these assumptions can si!nificantl$

alter the si>e of the estimate.

()uit* s$are$olding in oerseas companies directl* $eld b* New

Period +atest estimate Preiousl* publis$e

NZ$(/illion)

3ecem/er *& *.' ..

3ecem/er * -.- -.'

3ecem/er *' . .&

3ecem/er * .# '.

3ecem/er * . .*
mailto:[email protected]:[email protected]:[email protected]


20/21

Symbol:

.. data unavailable

International trade in carbon emissions unitsThe classification and treatment of emission units is still under discussion in international accountin! and

statistical forums. n compilin! oP and P statistics* Statistics '( re!ards emission units as intan!ible

non,produced assets. Therefore* international trade in these units is recorded in the capital account of the

oP. or e-ample* the sale of emission units b$ a resident to a non,resident is recorded as a capital

account receipt.


21/21

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