This graph shows one of the main indicators of New Zealand’s economic under performance in recent years. It displays our net international investment position, which measures New Zealand’s total debt to the world, including households, business and the Government.

The graph shows that in 2000, our debt to the world was just over $100 billion. It’s now approaching $180 billion and, by 2014, it is forecast to be nearly $250 billion. This large and growing foreign debt is a drain on our national income and makes our economy vulnerable to international shocks.

So we have a big task to turn this economy around and rebalance it towards savings and growth.