S&P's Watch on New Zealand's Current Account Deficit and Weak Economy

Standard & Poor's (S&P) has expressed concern regarding the growing current account deficit in New Zealand, which has become a primary factor that could impact the country's credit rating. According to recent data, the current account deficit has reached record levels, raising additional worries among international investors. Economists emphasize that such a deficit may indicate a lack of economic resources and a dependence on foreign investments.

Experts point out that the weakness of New Zealand's economy, evidenced by a slowdown in GDP growth and rising housing prices, exacerbates the situation. The decline of the construction sector also affects the country’s financial health, potentially resulting in increased risks for investors. S&P is closely monitoring the situation, as further deterioration could lead to a downgrade, affecting borrowing costs.

In light of rising interest rates and heightened global economic instability, New Zealand must find ways to improve its financial situation and reduce the deficit. It is expected that the government will be forced to take measures to sustain economic growth, which may include more active investment attraction and the development of programs to stimulate domestic consumption.

Thus, the worsening current account and the weakness of New Zealand's economy remain under the watchful eye of S&P and could pose significant challenges for the country if stabilizing measures are not implemented.

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