(Updates with detail and economist comment)
WELLINGTON, June 15 (Reuters) - New Zealand's posted a current account surplus in the first quarter and the annual deficit continued to narrow as tourism bolstered the services sector and foreigners earned less from their New Zealand investments.
The actual quarterly surplus was NZ$1.306 billion ($912.24 million) in the three months to March, turning around from a deficit of NZ$2.614 billion in the previous quarter, data from Statistics New Zealand showed on Wednesday. Economists polled by Reuters had expected a surplus of NZ$1.050 billion.
ASB Economist Kim Mundy said while the quarterly surplus was slightly larger than she had expected the annual current account was in line with expectations.
As a result, it has no implications for her forecast for first quarter gross domestic product, which remains at 0.5 percent growth. The GDP data will be published Thursday.
Higher spending by foreign tourists also saw the services surplus in the March 2016 quarter hit a record high.
The seasonally adjusted quarterly deficit was NZ$1.495 billion from NZ$1.948 billion in the previous quarter.
The annual deficit to March was NZ$7.504 billion, equating to 3 percent of gross domestic product. Economists were expecting the annual deficit to narrow to NZ$7.48 billion.
Less income earned from foreign investment in New Zealand was the main driver behind a slide in New Zealand's primary income deficit, Statistics New Zealand said.
“Generally, foreign-owned New Zealand companies earned lower profits this quarter,” international statistics manager Stuart Jones said.
($1 = 1.4316 New Zealand dollars)
