Outgoing Finance Minister Michael Cullen has released a November 7 report by the Treasury updating the department's outlook on the economy and on the Crown accounts.

"It is in the public interest for this material to be placed in the public domain to encourage ongoing debate about New Zealand's response to these serious external economic challenges," said Dr Cullen.

The update provided by the Treasury to the Minister of Finance reflects the update that has been provided to the Prime Minister designate.

Key conclusions include that the global financial turmoil has intensified in the last few months. This has weakened export demand and commodity prices which is likely to be reflected in lower domestic asset values and weaker confidence.

The update also predicts that unemployment will rise and real GDP growth will weaken due to external circumstances. It is estimated that gross sovereign issued debt will increase by around $5 billion, relative to PREFU forecasts, by 2012/13.

ENDS

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