Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


IMF: good policies helped deliver robust growth

Hon Dr Michael Cullen
Minister of Finance

Tuesday 20 May Media Statement

IMF says good policies helped deliver robust growth

Finance Minister Michael Cullen today welcomed the latest report on New Zealand by the International Monetary Fund, which states that sound economic management has resulted in ten years of robust economic expansion.

In its report, the IMF said that the country is now entering a period of greater economic uncertainty and that factors such as higher mortgage rates, high food and energy prices, a slowing housing market and the impact of the drought are likely to conspire to deliver a period of slower economic growth.

In the IMF’s view, a period of slower economic growth is likely to see the easing of some of the economy’s imbalances while high international commodity prices and slowing domestic demand are likely to combine to narrow the current account deficit.

“In its report, the IMF endorses the Government’s fiscal strategy and its focus on the economy’s medium-term interests. It notes that the New Zealand government is in a strong fiscal position,” Dr Cullen said.

In the view of the IMF, the banking sector in New Zealand is sound with stable profits, high capitalisation, and few nonperforming loans although vulnerabilities exist.

The IMF said that New Zealand banks are not exposed to sub-prime lending like in the United States but that current global financial market turbulence has flowed through to New Zealand in the form of higher cost of funding for commercial banks.

The IMF report also endorsed recent work by the Reserve Bank of New Zealand to ensure that the banking sector will remain robust to any further disruption to capital inflows.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Not Easy: Gordon Campbell On The Greens’ Ongoing Problems

Hard to treat the Greens’ belated decision to stand a candidate in Ohariu as being anything other than a desperation move, by a party whose own leadership is evidently concerned about its chances of survival...

A few months ago, the Greens felt able to forego that role in Ohariu in order to help a beleaguered Labour Party get its candidate Greg O’Connor across the line, and knock Peter Dunne out of the parliamentary frame. More>>


Gordon Campbell: On DHB Deficits And Free Trade

Currently the world is looking on aghast at the Trump administration’s plans to slash Obamacare, mainly in order to finance massive tax changes that will deliver most of their gains to the wealthy. Lives will be lost in the trade-off. Millions of Americans stand to lose access to the healthcare they need... More>>

Greens' Response: Slum-Like Rentals Exposed In Renting Review

“...The grim findings of the review are a wakeup call about the true state of rentals in this country. Too many renters are festering in slum-like conditions under the thumb of landlords who have largely unchecked powers and ignore tenants’ complaints when it suits them.” More>>


Gordon Campbell: On The Life And Times Of Peter Dunne

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>


Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>


Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>


Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>


Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>





Featured InfoPages

Opening the Election