New Zealand's current account deficit narrowed in the fourth quarter to NZ$1.92 billion ($1.25 billion), for an annual deficit of NZ$5.94 billion in the year to December, according to official data released on Thursday.
Statistics New Zealand said the smaller deficit resulted from more earnings from tourism, a higher tax take from foreign investors in New Zealand, and increased returns from exports.
The annual deficit represented about 4.5 percent of gross domestic product in the year ending December, economists said.
Economists polled by Reuters had, on average, forecast a deficit for the quarter of NZ$2.50 billion, and a deficit for the year to December of NZ$6.62 billion, equating to 5.0 percent of GDP.
The latest data compared with a revised deficit of NZ$2.80 billion in the third quarter, and a deficit of NZ$1.89 billion in the same quarter a year earlier.