NZ's bailouts...will it ever end?

Discussion in 'Asia' started by hipeter924, Apr 8, 2011.

  1. hipeter924

    hipeter924 Not a zombie yet

    May 5, 2009
    Thanks Received:
    Trophy Points:
    Nowhere you can follow
    A history of bailouts - business |

    NZ the next Greece/Ireland? We have a tax and spend government here I think. :eusa_eh:

    [​IMG]The New Zealand economy has recently been perceived as successful. However, the generally positive outlook includes some challenges. New Zealand income levels, which used to be above much of Western Europe prior to the deep crisis of the 1970s, have never recovered in relative terms. The New Zealand GDP per capita is for instance less than that of Spain and about 60% that of the United States. Income inequality has increased greatly, implying that significant portions of the population have quite modest incomes. Further, New Zealand has a very large current account deficit of 8–9% of GDP. However, despite this, its public debt stands at only 21.2% (2006 est.) [8] of the total GDP, which is small compared to many developed nations. However, between 1984 and 2006, net foreign debt increased 11-fold, to NZ$182 billion, NZ$45,000 for each person.[3] The combination of a modest public debt and a large net foreign debt reflects that most of the net foreign debt is held by the private sector. As of December 2010, net foreign debt was NZ$253 billon, or 132% of GDP.[9]

    One reason why New Zealand runs persistent current account deficits, that drives the net foreign debt upwards, is that earnings from agricultural exports and tourism fail to cover the imports of advanced manufactured goods and other imports (such as imported fuels) required to sustain the New Zealand economy. However, this trade imbalance is much smaller than the investment income imbalance which makes up the vast majority of New Zealand's current account deficit.[citation needed] Economy of New Zealand - Wikipedia, the free encyclopedia

    This is a direct result of Rogernomics and Pinochet economics that the lovely Chicago School of Economics played with here, current PM wants to finish them (and the country). :rolleyes:


    I liked Winston Peter's (right wing state capitalist politician) blunt speech here. :lol:
    Last edited: Apr 8, 2011

Share This Page