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.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news