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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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