The slower world economy is already having an impact on New Zealand with lower profits and dividends flowing to New Zealand. Those factors offset some of the improvement in the current account balance over the December quarter, National's Finance spokesman Bill English said today.

"The improvement in the deficit at the end of last year was largely due to the second ANZAC frigate dropping out of the year-to-date figures, and also due to the current high prices on the international markets for agricultural products.

"The short-term outlook is for continued improvement, with the deficit expected to improve back to 1999 levels over the next quarter or so.

"However, we remain concerned about the medium term outlook, with many forecasters now predicting a deterioration in the current account balance on the back of lower world growth reducing export volumes and prices.

"This highlights the need for continued focus on polices that will enhance our international competitiveness. On that front the current Government continues to take us backwards, with policies such as higher taxes and reregulation of the labour market," Bill English said.

Ends

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Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>