NZ FinMin Robertson: NZ$50 billion COVID-19 response and recovery fund

New Zealand (NZ) Finance Minister Grant Robertson is out on the wires, now, via Reuters, presenting the NZ annual Budget, with the key takeaways found below.

NZ$50 billion COVID-19 response and recovery fund.

Deficit seen reducing to 1.4% of GDP by 2024.

Projects net debt will surge to 53.6% of GDP by 2023.

Sees 2020 operating surplus before gains, losses NZ$-28.293 bln (HYEFU NZ$-0.943 bln).

Sees 2020/21 Obegal surplus/deficit NZ$-29.599 bln (HYEFU NZ$+0.057 bln).

Sees 2021/22 Obegal surplus/deficit NZ$-27.199 bln (HYEFU NZ$+1.752 bln).

Sees 2020 net debt 30.2 pct of GDP (HYEFU 19.6 pct).

2020 cash balance NZ$-32.031 bln (HYEFU NZ$5.154 bln).

2020/21 cash balance NZ$-43.313 billion (HYEFU NZ$7.973 bln).

Sees 2020 GDP -4.6 pct (HYEF +2.3 pct).

Sees 2022/23 Obegal surplus/deficit NZ$-16.454 bln(HYEFU NZ$4.061 bln).

NZ$4bln business support package; including targeted NZ$3.2 bln wage subsidy extension.

Obegal deficits will average, 9.3% of GDP, or NZ$28 bln, from 2020 to 2022.

NZD/USD reaction

NZD/USD was offered just above the 0.60 level and now extends losses towards 0.5950, as it tracked the sharp drop in its OZ peer, AUD. The aussie fell on disappointing Australian jobs data.

At the time of writing, the kiwi drops 21% to 0.5972, having hit a daily low of 0.5968.

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