Keith Woodford: New Zealand’s current account deficit, now running at $27 bln per annum.....

New Zealand’s current account deficit, now running at $27 bln per annum, is increasingly dominated by interest on historical deficits plus repatriated profits to overseas owners. Export growth is the only possible pathway to solve the problem

Almost everyone in New Zealand knows that per capita incomes have been drifting backwards for at least two years. Looking back further, Dean Brunskill here at interest.co.nz has authored a graph showing that per capita GDP in September 2024, which is the latest available data, was essentially the same as five years previously in pre-COVID September 2019.

Roger Partridge: Time for a new approach to foreign direct investment

New Zealand prides itself on being an open trading nation. When it comes to trade in goods and services this claim is certainly true. Few countries embrace free trade as unequivocally as we do.

It is a different story when it comes to capital. Our country’s screening regime for foreign direct investment is the most protectionist in the OECD. Where countries like Ireland and Singapore actively pursue foreign investment, it can seem like our Overseas Investment Act is designed to keep it out.

Roger Partridge: Foreign Investment - Ireland's secret financial formula is not so secret

Seeking Ireland’s secrets

Few countries feel so similar as New Zealand and the Republic of Ireland.

We are both island nations with much larger neighbours. Each of us has a population of about 5 million. We were both colonised by Britain. Consequently, English is our shared language, with only a per cent or two speaking the country’s first language natively. We lead the world in pasture farming.

And this year, we seem destined to meet in the knockout stage of the rugby world cup in France.

But, until the early 1990s, Ireland and New Zealand shared another less attractive characteristic. Both countries languished in the bottom half of the OECD’s GDP-per-capita league table.

Rahul Sen: India could soon be the world’s third biggest economy

NZ needs to build the trade relationship urgently

India’s economy has emerged as a bright spot in the aftermath of the COVID-19 pandemic. Currently the fifth largest global economy, it is predicted to become the third largest by 2030.

It is expected India will contribute 15.4% to global economic growth this year, second only to China. Prioritising our trade and economic relationship with both countries should be a key goal for New Zealand.