The latest IMF Current Account Ratings forecasts that our current account deficit will be proportionally the largest of the world’s 40 most advanced economies.
Specifically, the IMF said it would be worse than notorious cot cases such as Greece and ranks us the 3rd worst performer in its recent years decline among advanced economies.
This is a direct consequence of the appalling financial mismanagement over the last 3 years.
Thanks to our floating exchange rate it will eventually sort itself out, albeit initially at a considerable standard of living cost.
While financial mismanagement has been a key factor, other dumb government decisions have played a significant role, notably the ridiculously excessive lockdown leading to us being rightly branded abroad as the Hermit Kingdom.
The clampdown on migration has had a huge inflationary impact with some key activities such as the building industry for example. Additionally, labour shortages have adversely affected numerous parts of the economy. These problems will be compounded by an expected sizeable lift in migration, principally to Australia of our best and brightest.
It all augurs badly for the next few years. All of these dire consequences are a direct consequence of a truly appalling government, driven by ideology and an irresponsible approach to expenditure.
Perhaps, worse of all, is the creation of a racist society which will take years to mend, if ever.
Console yourself with the availability of non-stop live sport on television, something I suspect many folk are now doing.
I don’t know why the Kiwi dollar continues to hold up against the Aussie and the Greenback, but I’ve been wondering that for several years now. People will say it’s due to our interest rate increases but that’s a recent thing. What about the last three years, or more, as our economic stats grew worse?
I’m no economist but I’ve done courses in it and read widely, but I really don’t get this particular economic factor. A case perhaps of Adam Smith’s old quote, There’s a lot of ruin in a nation?
Yep all to true Sir Robert. Along with this government handing out grants and subsidies to all and sundry, we have created a delusional culture of financial ignorance in that those who contribute less to the tribe, think they are entitled to sit close to the fire and consume the most.
Spot on…Watching Madrid ATP tennis on SkyTV while reading this
The financial situation is bad enough but the divisions in NZ society is the saddest thing that has happened.