Dr Bryce Wilkinson: The mystery of the $52 Billion gift - Does New Zealand have a fairy godmother?

This research note questions how New Zealand has managed to sustain its large and growing current account deficits with the rest of the world without seeing a corresponding deterioration in its net international investment position (NIIP).

It highlights that while New Zealand has been spending more overseas than it earns, the country’s liabilities to the rest of the world have not increased nearly as much as one would expect.