The country has recorded its worst trade deficit ever for an August month, largely driven by an increase in imported goods including a drilling platform.
Official figures show a deficit of $1.2 billion for last month compared with a deficit of more than $800 million in August last year, an increase of 47%.
The value of exported goods edged up nearly 1% to $3.3 billion, led by logs and wood, although dairy exports fell 1.8% in the month.
Imported goods, including the $200 million drilling platform, rose nearly 10% to $4.5 billion, the largest value for any August month.
Excluding the drilling platform, the deficit would still be the second largest recorded for any August month.
Analysts expect the current account deficit to worsen in the short term, with the drought still affecting dairy and meat export volumes, while the rebuilding of Canterbury, robust consumer spending and high dollar stoke import demand.
Deutsche Bank chief economist Darren Gibbs says the deficit was larger than expected and reflects the effects of this year's drought, particularly on dairying; a high dollar and improving domestic demand.
"That's the second month in a row now that we've seen a very large trade deficit. The two deficits have been the largest since late 2008," he says.
Mr Gibbs says there is a weakness coming through in exports while strong domestic demand for imports is dragging more overseas product into the economy.
On an annual basis, the trade deficit stood at $2.1 billion, its widest in three years.
