N.Z. Government boosts spending, cuts budget surplus forecasts

In presenting the governments mid-year budget, the New Zealand Finance Minister said that the economy has been impacted by Brexit and the US/China trade war. Consequently to the details of the budget below, NZD/USD has risen to a high of 0.6555.

Key notes

• Sees 2021/22 Obegal surplus/deficit nNZ$1.752 bln (budget NZ$+4.683 bln).
• Sees 2019/20 net debt 19.6 % of GDP (budget 20.4 pct).
• 2019/20 cash balance NZ$-5.154 bln (budget NZ$-4.191 bln).
• 2020/21 cash balance NZ$-7.973 bln (budget -4.252 bln).
• Sees 2019/20 GDP +2.3 pct (budget +3.2 pct).
• To maintain net debt within a range between 15% to 25% of GDP.
• Fin Min announces NZ$12 bln of new infrastructure spending.
• Says while domestic economy slowing it is still outperforming global peers.
• NZ sees 2020/21 Obegal surplus NZ$ 0.057 Bln (Budget NZ$+2.131 Bln).