The New Zealand government’s financial statements continue to improve with the net debt for the 2018/2019 fiscal year, falling to just 19.2 percent of gross domestic product (GDP), giving it a $7.5 billion operating surplus, which is more than double the $3.47 billion surplus forecasted by the Treasury.
The fiscal surplus gives the government more room to loosen its belt to counter the economic slowdown by investing more.
Minister of Finance Grant Robertson acknowledged this on Tuesday, saying that “New Zealand is well-positioned for this point in the economic cycle and any global shocks that may come our way," according to the newsroom.
I am not seeing any evidence that New Zealand is heading towards a recession. The New Zealand economy is still growing.
Fiscal policy has a part to play alongside monetary policy as we manage these challenging global economic conditions.
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