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

 


IMF report backs NZ’s economic progress

Hon Bill English
Minister of Finance

10 June 2014

IMF report backs NZ’s economic progress

New Zealand should expect strong and increasingly broad-based economic growth, according to the International Monetary Fund’s latest report on New Zealand, published today.

The IMF is forecasting annual economic growth in New Zealand to peak at 3.5 per cent next year and not fall below 2.5 per cent over the next few years. This growth will be driven by strong construction activity, higher prices for exports and increases in net migration.

“This is the latest in a series of encouraging reports on the New Zealand economy, which confirms that we are well placed compared with most other developed countries,” Mr English says.

“The IMF highlights the importance of getting the Government’s books back to surplus to help the Reserve Bank keep interest rates lower for longer. Under the previous government, excessive spending, alongside the booming housing market, contributed to floating mortgage interest rates reaching almost 11 per cent.

“A range of indicators points to broad-based growth in the economy. Building consents in March were nearly double the number issued three years ago. Business confidence remains near 20-year highs. And employment figures showed 84,000 more jobs in the year to March - the largest annual increase in employment since 2004.

“Sticking to our responsible economic management will help ensure Budget forecasts for strong economic growth, average wage increases of $7,600 by 2018, and unemployment falling to 4.4 per cent, all occur.”

The IMF is expecting New Zealand’s current account deficit to increase to around 6 per cent of GDP by 2016 – still well below the levels seen in the mid-2000s.

“Although this longstanding imbalance remains a vulnerability, the latest figures are encouraging with Statistics New Zealand showing the current account deficit at 3.4 per cent of GDP,” Mr English says.

“Getting on top of Government spending to keep interest rates down and promote broad-based economic growth is a key plank of that improvement.

“Overall, the IMF report confirms the Government’s economic programme is taking New Zealand’s economy in the right direction,” Mr English says.

“This is the best way to support jobs and raise New Zealanders’ living standards.”

The IMF report is available at http://www.imf.org/external/pubs/cat/longres.aspx?sk=41620.0

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The National Leadership “Contest”

Key’s endorsement of English has turned this “contest” into a race for second place.

This succession was well planned. Lets not forget that English was told by Key in September of his intention to resign, and English was the only member of Cabinet entrusted with that information before it was sprung on everyone else on Monday morning. More>>

Latest: Judith Collins and Jonathan Coleman have withdrawn from the leadership race, leaving Bill English the only candidate to replace John Key as Prime Minister.

 

Education: Charter Schools Misleading Pass Rates

Labour: NCEA results for charter schools have been massively overstated... In one case a school reported a 93.3 per cent pass rate when the facts show only 6.7 per cent of leavers achieved NCEA level two. More>>

ALSO:

Rebstock Report Resolution: SSC Apologises To Derek Leask And Nigel Fyfe

Following a complaint by Mr Leask, the Ombudsman found that the State Services Commission acted unreasonably in relation to Mr Leask and identified numerous deficiencies in the investigation process and in the publication of the final report and in the criticisms it contained of Mr Leask... More>>

ALSO:

International Rankings: Student Results 'Show More Resourcing Needed'

NZEI: New Zealand had only held relatively steady in international rankings in some areas because the average achievement for several other OECD countries had lowered the OECD average -- not because our student achievement has improved. More>>

ALSO:

Earlier:

Salvation Army Report: Beyond The Prison Gate Report

A new Salvation Army report says changes must be made to how prisoners re-enter society for New Zealanders to feel safe and secure in their homes and communities. More>>

ALSO:

Surprise Exit: Gordon Campbell On The Key Resignation

The resignation of John Key is one thing. The way that Key and his deputy Bill English have screwed the scrum on the leadership succession vote (due on December 12) is something else again. It remains to be seen whether the party caucus – ie, the ambitious likes of Steven Joyce, Judith Collins, Paula Bennett, and Amy Adams – will simply roll over... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news