New Zealand’s government on Tuesday forecasts a larger budget deficit, and higher debt but better than expected economic conditions in the year ahead, as it opened its books and updated forecasts heading into the October election.
Key Highlights:
Forecasts a budget deficit of NZ$11.38 billion for the fiscal year ending June 30, 2024.
The government now expects the return to a budget surplus by 2026/27.
Forecasts economic growth in Q2 2023, Q3 2023 and Q4 2023.
Sees annual average GDP growth of 1.3% in 2023-24.
Forecasts the jobless rate at 4.8% in 2023/24 vs. earlier at 5.0%.
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