New Zealand Treasury half-year update out now;
- New Zealand sees 2014/15 OBEGAL (operating balance before gains and losses) of NZ$-0.6 billion (PREFU (Pre-election Economic and Fiscal Update)) NZ$+0.3 bln)
- 2015/16 OBEGAL surplus NZ$0.6 bln (PREFU NZ$0.8 bln);
- 2016/17 OBEGAL surplus NZ$2.6 bln (PREFU NZ$1.9 bln)
- Sees 2014/15 net debt 26.5 pct of GDP (PREFU 26.8 pct)
- Sees net debt declining to 22.5 pct GDP by 2019
- Sees 2014/15 cash balance nz$ -4.0 bln (PREFU NZ$-4.6 bln); 2015/16 nz$-3.5 bln (PREFU NZ$-2.9 bln)
- Sees March 2015 yr GDP at +3.5 pct (HYEFU (Half-Year Economic and Fiscal Update) +3.8 pct); March 2016 gdp +3.4 pct (HYEFU +3.0 pct)
More
- New Zealand Treasury reduces 2014/15 GDP forecast, raises later year on stronger domestic activity, migration
- Lowers inflation forecasts through to 2018
- Expects dairy price weakness to continue in coming months, sees recovery over 2015
- High NZD a headwind to growth; TWI at around 76.6 until early 2017, tTWI wi at 73 mid-2019
Comments from New Zealand finance minister English:
- Says budget surplus still achievable in 2014/15 despite new forecast of deficit
- Won’t engage in slash and burn spending cuts to achieve budget surplus this year
- Says the government is aiming to reduce net debt level to below 20 pct GDP by 2020
- Says aiming to have NZ$2.5 bln available in 2017 for possible tax cuts
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Headlines via Reuters
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NZD …. not a lot of reaction at all
