These two components combine into the current account, which has been in significant deficit in New Zealand for 40 years. That is not problematic in itself, but if it is consistently funding consumption rather than investment, then that cannot continue. The deficit worsened during the housing boom years of 2005–2008, sitting near 9 percent, a very deep deficit by OECD standards.
The development of circular business models will require innovation and structural change of production and consumption systems alongside technological change. For example, interventions on the supply side, such as eco-design and longer life cycles of products, as well as on the demand side, through a change in consumption and dietary patterns and a more efficient management of waste.