Deficit Underlines Importance of Exports

Media Release
23 March 2009

Current Account Deficit Underlines the Importance of Exports

The size of New Zealand’s current account deficit underlines the importance of growing our export base according to the Wellington Regional Chamber of Commerce.

Figures released today show that the current account deficit for the year ended December 2008 widened to $16.1 billion or 8.9% of GDP.

“Today’s figures reinforce how important it is for New Zealand to focus on its export performance,” said Chamber CEO Charles Finny.

“Notwithstanding the global economic slowdown, increasing our exports is the best strategy for New Zealand to pull through the tough times ahead. New Zealand’s economic recovery needs to be export-led.

“New Zealand is fortunate that as a food exporter it is well-placed to ride out the global recession relatively well but we also need to continue to diversify our export base. The services sector, which is predominant in the Wellington region, must play a major role here.

“The collaboration underway between the Chamber, EMA Central and the Wellington Branch of Export New Zealand is focussed on increasing exports out of the Wellington region. We also intend to work very closely with Grow Wellington and NZTE to this end.

“While the current account deficit is expected to narrow in line with a softening New Zealand economy (as imports and foreign-owned profits decline) we must not sit on our laurels. We must not lose the focus on exports.

“I am pleased that this message was well understood by Trade Minister Groser who spoke at our Export Breakfast this morning. I share Mr Groser’s optimism that the world’s major economies are sufficiently aware of the dangers of closing up in response to the global slowdown and that now is the time to push for better market access.

“The recently signed FTA with Australia and ASEAN is well-time and will provide a boost to exporters. Concluding the Trans Pacific partnership with Australia, the US, Singapore, Vietnam, Chile, Peru and Brunei and agreements with Korea and Hong Kong are doubly important now as are the progression of negotiations with Japan, India and the EU,” Mr Finny concluded.

ENDS

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