BIS Review 82/2010  5  In addition much will depend on how these extra savings are invested, and whether this is domestically or internationally. Financial markets do not judge our savings balance directly, but rather through its funding implications and its contributions to the external balance.
Balance of Trade – Strong export prices for much of our primary products (somewhat muffled by the strongish exchange rate) have been yielding improved export returns. At the same time consumers, farmers and businesses are all moderating their demand for imports. The result has been a quick and significant improvement in the direction of trade, recording positive balances once again.