New Zealand's annual present account deficit dropped to its smallest level for two decades in the year that ended March owing to the affect of the worldwide financial recession, official statistics revealed on Wednesday.

Statistics New Zealand (SNZ) said that the present account shortfall, an estimate of trade and investment flowing in and out of a nation, arrived at 4.5 billion Dollars (3.2 billion US) or 2.4% of gross domestic product (GDP).

SNZ said that this was the smallest deficit since the year to September 1989 and revealed a steep drop in imports outshining lesser exports and overseas firms making lesser earnings in New Zealand.

Another aspect was the huge one-off tax payouts by the four biggest banks, which are Australian held, without which the yearly deficit would have summed to 6.1 billion Dollars.

In the three months till March, the existing account was in excess by 200 million Dollars, the first March quarter surplus since 2003, because exports began rising once more.

SNZ's Balance of Payments Manager, John Morris said, "This is the first increase in goods exports for over a year".

ASB Bank Economist, Jane Turner said that the drop in the annual present account shortfall had been striking, as it reached its zenith at 16 billion Dollars in the 2008 year.