NEW ZEALAND ECONOMIES

Poverty Bay Herald, Volume LIX, Issue 17947, 26 November 1932, Page 16

NEW ZEALAND ECONOMIES

LONDON, Sept. 24. The New Zealand Finance Minister, the Hon. W. Downie'Stewart, gave some striking figures showing how seriously the crisis had” affected the country tn a speech to the New Zealand Society yesterday In two years the nation s income fell from £150,000,000 to £llO,000 000 In the same period exports, 94 per cent, of which are made up of pastoral and dairy products, declined in value by over 40 per cent., though i creased quantities were shipped. Nevertheless, Mr. Stewart was able to point out that the decline in New Zealand's exports was less than the world average, while the contraction in imports was greater than that average. This had enabled the country to maintain a surplus of exports over imports, which is of vital importance to Now Zealand, since it provides tho only means by which, she can meet her London obligiitions. The country, ho showed, was making rapid progress towards producing an adequate trade surplus. Two years ago imports exceeded exports, but last year there was a surplus of exports of over £11,000,000, while this year the favorable balance is likely to amount to between £12,000,000 ami £15,000,000. At present, New Zealand has a Budget deficit in tho neighborhood of £2,000,000. But in view of the country’s excellent financial record this need not cause alarm.

Mr. Stewart said that over a period of 40 years New Zealand had on four occasions only suffered a Budget deficit, two of wjiich have occurred in tho present depression. For the last 40 years Budget surpluses aggregated £34,'500,000, most of which is invested in revenueproducing assets.