Country Team Analysis Paper 2 : New Zealand

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Country Team Analysis Paper 2: New Zealand Balance of Payment The balance of payment for New Zealand is separated into three distinct sections. The sections include the current account, capital account, and financial account. Each section plays an important role in determining if the balance of account for a country is positive or negative. To analyze what New Zealand’s balance of payment means to them, each section will be reviewed in detail below. The current account records transactions that pertain to goods, services, and income receipts (Hill and Hult, 2016). For the year 2015, the current account has a deficit of 8.1 billion dollars, or -3.1 percent when expressed as a percentage of GDP (Balance of Payments, 2016). The capital account reflects one-time changes in the stock of assets, while the financial account reflects transactions that involve the purchase or sale of assets (Hill and Hult, 2016). In New Zealand, the capital account was 383 million in 2015, which was an increase of over 370 million in 2014. The financial account was -1.47 billion, which was down over three billion from 2014 (Balance of Payments, 2016). Balance of Payment Situational Analysis As a whole, New Zealand’s current balance of payment situation is not ideal. They have a negative current account and financial account balance, with the capital balance accounting for minimal amounts of money in comparison. While there are many steps that can be taken to help New Zealand 's balance of
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