The IMF has forecast that New Zealand will have the worst current account deficit in the developed world for the next five years, proving that National’s promise to rebalance the economy has failed, says Labour’s Finance spokesperson David Parker.
“Our current account deficit was last year the worst in the developed world and the IMF says it will remain at rock bottom for the next five years.
“By 2016 the deficit will hit 7% which is well into what economists call the ‘danger zone’.
“We are simply not selling enough products and services overseas to cover what we import and the interest we pay. That makes us poorer. To fill the gap we have had to increase our borrowing as a country and sell off our land and businesses. That’s not good enough.
“National promised to rebalance the economy and increase exports. They have clearly failed. We have lower growth than our major trading partners Australia and China. We should be doing better.
“Labour has the policies to rebalance the economy and get our country back in work and back in the black. And New Zealanders support them. Raising the retirement age will limit the impact of our ageing population, universal KiwiSaver will boost our savings and investments, and a capital gains tax will direct those investments into the exporting side of the economy.
“National’s policies are failing New Zealanders, they must change tack,” says David Parker.
17th April 2013 Media Statement