In the semi-annual economic and fiscal update report, the New Zealand Treasury Department has forecast three quarters of contraction of the economy from the second quarter of 2023.
Key comments
It will increase the planned bond issuance by 18,000 million New Zealand dollars in 4 years.
is anticipated return to budget surplus in 2024-25.
Fiscal policy will help the RBNZ fight inflation.
The Government will apply a contractive fiscal policy.
The gasoline tax cut will end by March 31.
Actual and forecast inflation is too high and needs to be brought down.
A slowdown in spending and an increase in unemployment levels are expected as more people enter the workforce over the next year.
The level of employment is expected to remain high.
Even with the expected slowdown for the next period, the level of employment is expected to remain high.
Source: Fx Street
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