New Zealand's current account deficit was 2.8 billion NZ dollars (2 billion U.S. dollars) in the final three months of last year, Statistics New Zealand figures showed on Wednesday.
The deficit, which represents the gap between what the country paid out overseas and what it earned, is a turnaround from a 1.7 billion NZ dollars surplus in the previous three month period.
The deficit was due mainly to imports rising faster than exports and an increase in income earned by overseas investors on investments in New Zealand
Expected reinsurance payments to local insurers of 3.6 billion NZ dollars following the Canterbury earthquake resulted in a surplus in the previous three months.
But Statistics New Zealand said no reinsurance was counted in the December quarter due to difficulties distinguishing between damage caused by the 4 September earthquake and Boxing Day aftershock.
The deficit for the whole of 2010, of 2.3 percent of GDP, was the lowest in nearly a decade.