Story: Balance of payments

Consumers spending

Consumers spending

Eager shoppers queue to purchase consumer goods at one of the Warehouse stores in 2005. One possible explanation for New Zealand’s high level of current-account imbalances and heavy levels of foreign borrowing is that New Zealand consumers are less willing to sacrifice present consumption for the sake of future welfare. Certainly a number of politicians have commented on the country’s culture of spending rather than saving.

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Otago Daily Times
Reference: 24 March 2005, p. 28

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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 23 May 2022)

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