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

 


Commerce Commission: Mercury Cleared To Acquire Trustpower’s Retail Business

The Commerce Commission has granted clearance for Mercury NZ Limited to acquire Trustpower Limited’s retail business. Deputy Chair Sue Begg said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.... More>>



Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>


Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>