According to analysts at Westpac, New Zealand’s fiscal position remains healthy, with large surpluses forecast as far as the eye can see and debt expected to drop below 20% of GDP.
Key Quotes
“This year’s operating surplus is expected to be lower due to a catch-up on last year’s unintended spending shortfall.”
“The Government has scope to increase its spending while remaining within its fiscal responsibility rules, but has not done so today.”
“But with the pressures of three governing political parties, we think that the Government will eventually accede to demands for more spending.”
“The Treasury’s economic growth forecasts previously looked too optimistic, but are now broadly in line with our view.”
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