NZ FinMin Robertson: Economy expected to be robust in near term

While presenting the annual Budget on Thursday, New Zealand (NZ) Finance Minister Grant Robertson sounded optimistic on the near-term economic outlook.

Key takeaways

NZ to extend and add to support to counter high inflation hitting cost of living

A new temporary $27 a week payment for people who earned less than $70,000 last year in a $1 billion cost of living package.

Fuel tax cuts and half-price public transport extended for another two months to the end of August.

NZ sees 2021/22 operating balance before gains, losses of nz$-18.978 bln (HYEFU NZ$-20.844 bln).

NZ sees 2021/22 net debt 36.9 pct of GDP under old calculation method (HYEFU 37.6 pct).

NZ 2021/22 cash balance NZ$-31.78 bln (HYEFU NZ$-34.100 bln).

NZ sees 2022/23 GDP 4.2 pct, unemployment rate seen at 3.3%.

economy expected to be robust in near term.

NZ government forecast to return to OBEGAL surplus in 2024/25.

Market reaction

NZD/USD has recaptured 0.6300 on the NZ Budget release, currently trading at 0.6309, up 0.22% so far.