Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


The incredible shrinking current account deficit

The incredible shrinking current account deficit

While the value of dairy exports has helped New Zealand record a current account deficit in the December 2013 quarter, $900 million less than in the September 2013 quarter, Federated Farmers knows trade agreements are a must to continue this positive trend.

“Our export performance continues to shine and while dairy is leading, it is a story of our superbly resilient primary industries,” says Bruce Wills, Federated Farmers President.

“As Westpac Institutional Bank noted, “A sharp rebound in export volumes, after the severe drought in early 2013, led to the strongest seasonally-adjusted goods balance on record.”

“The good news is that New Zealand's net international liability position in the December quarter fell to 66.6 percent of Gross Domestic Product. It puts us in the best position since 2002.

“Of course the big thing helping New Zealand is that we produce what the world wants and needs.

“We cannot do this without trading partners and trade agreements. It means the Trans Pacific Partnership would be like adding a super charger to our turbo charged ‘rock star’ economy.

“I mean New Zealand not only became the first country to sign a Free Trade Agreement with China and last year our exports surged some 25 percent. We now of course have only the sixth currency to be directly traded with the Chinese Renminbi.

“That will be a huge advantage to exporters and deepens the great relationship we have with China.

“It is why we are so keen on the Trans Pacific Partnership as it opens up massive opportunities for every New Zealander.

“We may be small in terms of people but we held in high regard for our core competitive advantage of producing food. Once they taste the New Zealand difference they see that we are a small and smart economy from aviation to information communication technology.

“Food is our foot in the world’s door and it explains why we are the land with the incredible shrinking current account deficit,” Mr Wills concluded.


Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news