Mitchell Mark: Questions for Oral Answer — Questions to Ministers 
Mitchell Mark: Questions for Oral Answer — Questions to Ministers 
[Volume:677;Page:664] 
8. 
MARK MITCHELL (National—Rodney) 
 to the  
Minister for Economic Development 
: What reports has he received demonstrating New Zealand’s improved export performance? 
Hon STEVEN JOYCE (Minister for Economic Development) 
: 
 I have received the 5-yearly  
Census of International Trade in Services and Royalties 
. It shows exports in commercial services have increased to $4 billion in 2011 which is an increase in 60 percent over the last 5 years and there has been significant diversification away from traditional tourism services towards computer services management fees and royalties. This is good news for New Zealand as these sorts of service exports are less affected by the distance from markets which has always been one of the challenges in the past for New Zealand relative to other countries. It comes on top of recent news that New Zealand’s merchandise trade grew nearly 10 percent in the last calendar year and these are all signs of the strengthening export growth story.  
Mark Mitchell 
: What reports has he received showing that this export-led growth will continue?  
Hon STEVEN JOYCE 
: I have received the HSBC report  
The World in 2050 
. According to HSBC economists New Zealand is first amongst all developed countries in terms of its export-led growth potential with GDP growth forecast to average 3.4 percent over the 10-year period to 2020. This is an encouraging projection ahead of others like Australia at 2.4 percent Canada at 2.3 percent and the UK at 1.6 percent. New Zealand’s strong outlook is attributed by these economists to the Government’s focus on exports investment in technology infrastructure like ultra-fast broadband and New Zealand’s strong performance in education and skills training.  
Hon David Cunliffe 
: By how many billions of dollars is his own Government projecting the current account deficit to worsen over the next 4 years? 
Hon STEVEN JOYCE 
: The pre-election update last year forecast the current account deficit to widen by about just under $5 billion over the next 4 years. The main reason for that apart from export prices coming off their record highs is the Canterbury rebuild which is forecast to increase import payments. But I think that just underscores the requirement to get stronger export growth. 
Mark Mitchell 
: How important is export-led growth to boosting jobs and incomes in New Zealand? 
Hon STEVEN JOYCE 
: Very important. As a small trading nation New Zealand’s economic growth strongly relies on our ability to trade successfully with the rest of the world. Growing exports boost our incomes relative to other countries’ increasing our standard of living and making New Zealand a more attractive place to live and bring up a family in. New Zealand cannot become prosperous by trading with itself. New Zealand’s exports as a share of GDP sit at around 30 percent in comparison with around 40 percent to 55 percent in similar-sized countries overseas. That is why this Government has made it a priority to reverse the unbalanced concentration of growth in the non-tradable sectors by ensuring that businesses have access to the necessary skills capital resources infrastructure capital markets and export markets needed to build a stronger economy.