New Zealand's current account deficit rose to $2.5 billion in the September quarter, with the annual deficit of $6.1 billion representing 2.6 percent of GDP.
ASB chief economist Nick Tuffley says the deficit is low by historical standards, but it is going to rise to 5 or 6 percent of GDP as weak dairy prices begin to impact on our exports.
He says if oil prices stay down, we'll be saving about $3 billion on our import bill – but it will also knock $500 million off our exports.
GDP figures are out today, and Mr Tuffley says they're expecting around 0.8 percent growth for the quarter, 3.1 percent for the year – a respectable result.
Watch the video for the full interview with Nick Tuffley.
source: newshub archive
