New Zealand's trade deficit has ballooned to one of the highest in the developed world, prompting a warning from Standard and Poor's.
The current account deficit stood at $2.7 billion in the March quarter, well ahead of economists' expectations.
Statistics New Zealand partly blames the rise on surging oil prices, higher freight costs and stronger imports of goods like cars and computers.
But the real surprise came from a widening investment income deficit, driven by higher offshore interest payments, while the country received less income from overseas investments.
On an annual basis, the deficit hit $14.5 billion, or 9.3% of gross domestic product.
Deutsche Bank's chief economist, Darren Gibbs, says the peak is near, as a slowing domestic economy and falling dollar will eventually see a reversal in the deficit.
Meanwhile, the figures have been putting pressure on the New Zealand dollar.
It has shed almost 2% against the US dollar since the data came out, to hit its lowest level in about three months.
At 6.40am on Friday, it was trading at US60.99 cents,83.07 Australian cents, 33.33 pence, 70.76 yen and .4842 Euro.
