Keith Woodford: Dairy is the export leader that underpins the economy....

Dairy is the export leader that underpins the economy but as Keith Woodford notes, it can only do what is possible

In my most recent article I set out the reasons why sustained economic growth for New Zealand is not possible without sustained growth of exports. Our latest current-account deficit of $27 billion for the September 2024 year is a measure of the extent to which we are currently living beyond our means.

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.