NZ Economy Strengthens as Government Books Improve

Finance Minister Nicola Willis announced today that New Zealand's economy is strengthening, with improved government books and forecasts of healthy economic growth. The pre-election update shows a significant reduction in the deficit for this financial year, from $11.4 billion to $6.8 billion, and an even smaller deficit next year.

The operating balance surplus is forecast to grow from $4 billion to almost $12 billion over the following three years. Debt as a proportion of the economy is expected to start declining in 2028/29, with debt falling in dollar terms in 2030/31 for the first time since 2017/18.

The government will borrow $15 billion less over the next four years due to reduced bond issuance, resulting in lower borrowing costs. This means that more money will be available for New Zealanders' needs and ensures the country is better equipped to handle global uncertainties.