The gap between what New Zealand spends overseas and what it earns has widened.
The current account deficit stood at $5.6 billion, or 3% of Gross Domestic Product, for the year to the end of June.
The deficit was almost 9% at the height of the financial crisis, but was down to 2.4% for the year to the end of March.
Statistics New Zealand attributes the latest rise to foreign-owned companies making larger profits and lower taxes received from foreign investors.
ASB Bank chief economist Nick Tuffley says the underlying dynamics are changing, as the economy gradually recovers from recession. He expects domestic profitability to improve as the economy picks up.
