Story: Balance of payments

Current account as a percentage of GDP

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.

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How to cite this page:

C. John McDermott and Rishab Sethi, 'Balance of payments - Sustainable current accounts', Te Ara - the Encyclopedia of New Zealand, (accessed 25 May 2022)

Story by C. John McDermott and Rishab Sethi, published 11 Mar 2010