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New Zealand forecasts smaller deficit as economy grows
Treasury now expects an NZ$8.73 billion deficit in 2027 and a surplus in 2028-29 as stronger growth lifts tax revenue.
- On Tuesday, New Zealand's Treasury forecast a smaller budget deficit and earlier return to surplus, projecting an operating balance deficit of NZ$8.73 billion for the year ending June 30, 2027.
- While conflict in the Middle East has delayed recovery, Treasury Secretary Iain Rennie noted the economy is performing better than projected in the May Budget. Growth has offset previous economic gloom.
- Net core Crown debt is projected to peak at 43.9% of GDP in 2027-28 before trending downward, Finance Minister Nicola Willis said. She warned the update should not be "treated as a green light to open the chequebook."
- Opposition finance spokeswoman Barbara Edmonds pledged that Labour would be "fiscally responsible, ambitious for the economy and focused on the future" during the campaign. Parties finalize platforms ahead of November's general election.
- Addressing long-term challenges, Rennie warned that New Zealand's aging population renders the country's financial position "unsustainable" without further checks. Economists echo these concerns amid global instability and infrastructure demands.
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Treasury forecasts smaller deficits and earlier surplus
The Government’s books are looking stronger than expected, with Treasury forecasting smaller deficits, lower borrowing and a quicker return to surplus, although higher inflation has also helped boost tax revenue. The Pre-election Economic and Fiscal Update forecast a deficit of $8.7 billion for 2026/27, compared with $14.1 billion forecast in May. On the OBEGALx measure, […]
Coverage Details
Total News Sources11
Leaning Left2Leaning Right1Center5Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
L 25%
C 63%
12%
Factuality
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