Current Account Deficit Another Wake Up Call

Having a current account deficit sitting at 8.6% of GDP is not where we want to be in the middle of a global financial crisis (we need to borrow from the rest of the world to bridge the deficit).  Increasing our export earnings has to be a key priority for the new Government.  Clearly our policy settings and interventions to help boost exports are not the right ones as our exports as a proportion of GDP showed a steady decline under 9 years of the previous Government.  This is a key focus of activity for the Chamber.  We have been pleased by the responses received to our concerns from Ministers Groser and Brownlie.  Skilling and Weldon have likewise been agitating about the need for change.  I was also pleased to read over the weekend the concern that NZ Post CEO John Allen was expressing about the need to improve our export performance.  Only an NZ Inc approach involving all agencies of Government and the business community is going to solve this problem.

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