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

 

NZ Budget 2016: Budget paints a strong picture for economy

NZ Budget 2016: Budget paints a strong picture for NZ economy


The country’s economy is in a strong position, according to the latest figures and forecasts released in today’s Budget, with unemployment dropping, wage forecasts rising and strong export figures.

Real GDP growth is now forecast at an average and stable 2.8% over the next four years, inflation remains subdued, and with low interest rates New Zealand is well positioned. Despite current weak dairy prices, exports grew by some $2 billion in the last year, reflecting a broadening of the country’s exporting base.

“The economy is clearly in a good place, but we are already seeing the strain that growth is putting on our infrastructure,” said PwC Partner Richard Forgan.

Unfortunately, the good economic news doesn’t translate fully to the fiscal result, as low inflation continues to subdue tax revenues. The Minister of Finance has therefore had rather fewer choices than he otherwise might have hoped, particularly in the lead-up to the Election next year.

On the other hand, the Government’s finances remain strong, and net debt is expected to peak next year at 25.6% of GDP, before dropping over the following years to reach 19.3% in 2020/21. Overall, this is a position that most developed countries would envy.


-ends-

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>


Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>

ALSO:



Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>


Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>