Where to from here?
With a trade deficit of over $5 billion and rising it is surprising that government doesn’t see the need to worry.
There seems to be an attitude that once the dollar drops “she’ll be right”; exports will rise with a competitive
exchange rate; imports will fall as consumers find goods get more expensive and thus the trade deficit will self correct
to a great extent.
That premise might have held true a few years ago but there has been a paradigm shift in business and global trade in
the last 2 to 3 years which makes that scenario very unlikely.