MORE DOMESTIC SAVINGS NEEDED TO REDUCE DEFICIT

New Zealand needs to increase its domestic savings in order to reduce the Current Account deficit, Deputy Prime Minister and Treasurer Winston Peters said in response to latest figures.

"The current figures published this morning for the December 1997 quarter were largely as expected," Mr Peters said.

"While the likely outlook for the Current Account is for a further deterioration in the short-term, it is expected to steadily improve over the next two years.

"The weaker exchange rate will play an important role in the improving Current Account by boosting exports.

"All of this highlights the problem New Zealand faces with a lack of domestic savings."

Mr Peters reminded commentators that when looking at the economy, they need to consider the broader economic fundamentals, which remain sound.