XE Data Update - NZ Government’s Multi-Billion Fiscal Stimulus Package Announcement
The NZ Government’s multi-billion fiscal stimulus package has just been announced.
The key points are:
- New Zealand announces NZ$12.1 billion economic package in response to covid-19
- Economic package accounts for 4% of GDP, larger than response to global financial crisis
- To invest NZ$500 million on healthcare, NZ$5.1 billion on wage subsidies, NZ$126 million on leave and self-isolation support
- Support includes NZ$2.8 billion income support package; NZ$2.8 billion in business tax changes
- Measures include NZ$600 million initial support for aviation sector
- Finance Minister Robertson says a recession in New Zealand is almost certain
- Finance Minister says many New Zealanders to lose jobs and some businesses will fail
- Finance Minister says Treasury forecasts show with the package annual growth will drop to 1% by q1 2021
- Finance Minister Robertson says debt will substantially increase; core crown debt will go over 15-25% target
- Finance Minister Robertson says this year's budget to be the second phase of broader recovery package
The NZD is a little higher in immediate response.
Current indicative levels are: