However, the quarterly deficit for the three months ended December showed a slight improvement and economists said yesterday that the deficit was expected to narrow over the next two years to 6% of GDP through more muted imports and smaller net outflows of investment income.
The balance of payments is a record of all New Zealand's transactions with the rest of the world.
It is made up of the current account and the capital account.
ASB chief economist Nick Tuffley said the overall annual deficit was close to expectations, although the mix was slightly different from his expectations.
The goods trade balance held up better through stronger exports and softer-than-expected imports.
The services trade balance was noticeably weaker.
Travel export earnings weakened, while imports of services were comparatively strong through higher freight costs.
The investment income balance was also slightly weaker largely as foreign direct-investment income inflows took a hammering, he said.
"The extent of the deficit has been catching the eye of credit rating agencies and the expansion of the deficit could cause some concern, even though it was widely expected."
The annual deficit increased to $16.1 billion and the quarterly unadjusted deficit was $4.02 billion.
From a longer-term perspective, the focus on the deficit should reduce, Mr Tuffley said.
