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New Zealand sees three quarters of negative GDP growth in CY23
In the Half Year Economic and Fiscal Update, the New Zealand Treasury has forecasted three-quarters of a shrinking economy starting in the second quarter of 2023.
Key notes
- Lifts planned bond issuance by nz$18bln over 4 years.
- Forecasts return to budget surplus in 2024-25.
- Fiscal policy will help RBNZ battle inflation.
- Government will run contractionary fiscal policy.
- To end cut in gasoline tax by March 31.
- Actual and expected inflation is too high and needs to be reduced.
- Expect spending to slow and unemployment levels to increase as more people join the workforce over the coming year.
- It is anticipated that the level of employment will remain high.
- Even with the expected slowdown in the period ahead, it is anticipated that the level of employment will remain high.
NZD/USD update
Fuelled by a softer US dollar, the Kiwi has managed a score into the 0.6500s through 0.6450 resistance ahead of today's Federal Open Market committee.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
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