The seasonally adjusted current account deficit in the New Zealand economy has grown to $1.8 billion in the June 2010 quarter. It is expected that the rise in income deficit and lower rate of taxes received by the foreign investors has led the economy into such a situation. According to the recently released figures, the deficit has seen a jump of close to $600 million as compared to the last quarter.

On the other end, the foreign owned companies operating in New Zealand have taken home a very high profit which has pushed the income deficit in the country.

Moreover, experts are also of a view that the foreign investors have earned more by the other shareholdings that they have in the country and simply by lending money in the economy.

It is to be mentioned here that the deficit level for the year ended June 2010 was $5.6 billion, or 3 per cent of GDP. It has risen from a level of 2.4% of the GDP to the current level. In fact, the figure is expected to go up even further after it will see a hike from the Canterbury's quake expenditure.