New Zealand's financial markets have a lot to digest lately with the falling dairy auction price, a rising balance of payments deficit and the release today of the country's latest GDP growth figure.
ASB senior economist Jane Turner says yesterday's current account figure – a $7.8 billion deficit – is being caused by a deterioration in the trade balance, mainly driven by falling dairy prices.
But in terms of a percentage of GDP, it's historically quite low. Ms Turner says tourism has picked up strongly in the past year.
But the deficit is expected to rise over the next few years, settling at around 5.5 percent of GDP.
Watch the video for the full interview with Jane Turner.
source: newshub archive
