Story: Balance of payments

IIP-to-GDP ratio, 2007

IIP-to-GDP ratio, 2007

A country’s international investment position (IIP) measures its total international debt, so one way of determining the country’s ability to sustain such debt is to compare the figure with the country’s gross domestic product (GDP). This graph compares New Zealand IIP-to-GDP ratio with other OECD countries in 2007. As can be seen, at that time New Zealand’s level of debt was among the most negative of the countries.

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How to cite this page:

C. John McDermott and Rishab Sethi, 'Balance of payments - Sustainable current accounts', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/graph/23972/iip-to-gdp-ratio-2007 (accessed 22 January 2022)

Story by C. John McDermott and Rishab Sethi, published 11 Mar 2010