Story: Balance of payments
One accepted standard of the sustainability of a current-account deficit is its value relative to the country’s total level of production, measured as gross domestic product (GDP). This graph suggests that since 1995 the deficit has fairly often been more than 6% of GDP, especially since 2005. Some critics have suggested that 6% is at the top range of a sustainable current-account-to-GDP ratio.
Source: Reserve Bank of New Zealand
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Te Ara – The Encyclopedia of New Zealand
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