Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


New Zealand economy, finances improving, Moody’s says

New Zealand economy, finances improving, Moody’s says

Jan. 29 (BusinessDesk) - New Zealand’s economy and the government’s books are on the mend after taking a hit from a protracted recession and a series of earthquakes several years ago, according to Moody’s Investors Service.

The rating agency sees New Zealand’s economic strength as ‘high’, its institutional strength as ‘very high’, the nation’s fiscal strength as ‘very high’ and its susceptibility to event risk as ‘low’, it said in a statement. New Zealand holds an Aaa sovereign rating with Moody’s, which has just completed its annual credit analysis on New Zealand, separate to a rating action.

New Zealand’s accelerating economic growth and the forecast return to fiscal surplus in the 2014/15 year means government debt to gross domestic product will peak below the median for similarly rated nations and stabilise after that, Moody’s said.

“New Zealand’s economy and government finances are on an improving trend in the aftermath of a prolonged, albeit mild, recession and a series of earthquakes that had series effects on both,” Moody’s said.

The country’s economic prospects for the year have been latched on to by international commentators, with HSBC dubbing it as likely to be ‘the rock star economy’. Growth is expected to come from the accelerating pace of the Canterbury rebuild, Auckland house building and persistently high international dairy prices.

The nation’s reliance on foreign savings and its current account deficits remain a challenge to New Zealand’s creditworthiness, though Moody’s noted a large portion of its international liabilities belonged to subsidiaries of Australian banks, and given the strength of the parent lenders, were unlikely to pose a significant risk.

Moody’s assessed New Zealand’s banking system risk as low, saying it is “one of the highest rated.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news