The International Monetary Fund (IMF) with its
- New Zealand: Staff Concluding Statement of the 2023 Article IV Mission
In summary:
- New Zealand is likely to continue slowing in the near term as monetary tightening takes hold. Inflation is declining but will remain high for a while. The current account balance has deteriorated significantly, reflecting excess demand and one-off factors.
- Macroeconomic policies should retain a restrictive bias. Fiscal policy should prioritize the recovery from the floods and cyclone, while limiting other discretionary spending. The monetary policy stance is appropriate and should aim to bring inflation to target.
- The financial sector remains sound with ample capital and liquidity levels. The RBNZ should continue to monitor financial conditions and calibrate macroprudential settings as required to maintain financial stability.
- Structural policies should aim at promoting durable and inclusive growth, particularly via tax reforms, innovative investment, infrastructure for climate resilience, and greater productivity gains such as for education and the labor market.
Check the link out for much more if you are interested.
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An IMF "Concluding Statement" describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.
