The latest Crown accounts show the Government’s financial position and New Zealand’s underlying economic fundamentals remain sound, providing protection from global volatility.
The Treasury today released the Crown’s financial results for the seven months to 31 January 2019. They show core Crown tax revenue and core Crown expenses within 0.5% and 1.3% of the Treasury’s respective Half Year Economic and Fiscal Update (HYEFU) forecasts, and a $1.9 billion OBEGAL surplus.
Net core Crown debt is in line with the HYEFU forecast at 20.7% of GDP. The forecasts show the Government is on track to meet the Budget Responsibility Rule of reducing net debt to 20% of GDP within five years of taking office.
Our responsible fiscal management of running surpluses and keeping expenses and debt under control is necessary and effective.
Also this week, the latest NZIER Quarterly Predictions showed forecast economic growth of around 2.7 per cent over the next five years – noting that while this is slightly lower due to global volatility, it still represents the longest stretch of growth in New Zealand since 1992.
NZIER also noted the improvement in business confidence in the December quarter and that the labour market is expected to remain solid.
The New Zealand economy is performing well, meaning we are well-placed for any increased international economic slowdown. This Coalition Government remains committed to responsible fiscal and economic management.