The difference between what the country earned and spent internationally has hit its highest level in three years.
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Official figures showed the current account deficit for the year ended March was $7.9 billion from $7.1bn at the end of last year.
That amounted to 2.8 percent of the value of the economy - a slight deterioration.
This was caused by growth in imports causing a bigger trade deficit, which an improvement in the services sector could not offset.
On a quarterly basis, the actual current account for the three months ended March showed a small surplus of $182 million, which compared with a deficit of $2.7bn in the final quarter of last year.
However, on a seasonally adjusted basis, which smooths out one off events and influences, there was a deficit of $3.05bn from $2bn in December, which was the worst quarterly deficit in nine years.
The balance of payments broadly measured the country's ability to pay its way in the world and how much it needed to borrow.
ANZ economist Miles Workman said the outlook was mixed.
"World prices for New Zealand exports are elevated on the back of strong global demand and NZ dollar depreciation is supporting exporter incomes and making imports less attractive at the margin,"Mr Workman said.
However, stronger inflation around the world and higher oil prices would keep a check on trade.
"And further out, risks of escalating global trade tensions could see global trade flows slow, driving a material slowdown in global growth and therefore demand for NZ exports," he said.
Credit rating agencies take note of the deficits as a sign of an economy's indebtedness.
The net deficit of the economy's investment liabilities - the difference between what New Zealand has invested overseas and what foreign investors own in New Zealand - was at its lowest level in nearly 20 years.
