The NZ Current Account Balance for Q2 2025 has come in at a much smaller deficit than was expected, and much smaller than Q1.NZ Current Account Balance Q2 2025: -0.970bn NZD (expected –2.700bn, prior 2.324bn)New Zealand Current Account Annual (Q2) is -15.956bn NZD (expected -20.4bn, prior -24.662bn)New Zealand Current Account/GDP (Q2) -3.7% (expected -4.8%, prior -5.7%) NZD/USD is down just a bare few tics after the data. Blink and you'd miss it. ---The current account is a key part of a country’s balance of payments (which records all transactions with the rest of the world). It mainly tracks the flow of goods, services, income, and transfers.It has four main components:Trade in goods (exports minus imports of physical products)Trade in services (exports minus imports of services like tourism, banking, shipping, etc.)Primary income (cross-border investment income like dividends, interest, and wages)Secondary income (one-way transfers such as remittances, aid, or pensions sent abroad)Surplus vs deficit:A current account surplus means the country earns more from exports, services, and investment income than it spends on imports and transfers.A current account deficit means it spends more abroad than it earns, often relying on borrowing or capital inflows to cover the gap.In short: the current account shows whether a country is a net lender or net borrower to the rest of the world. This article was written by Eamonn Sheridan at investinglive.com.