NZ Fiscal Update Predicts Stronger Growth and Improved Finances

New Zealand's pre-election fiscal update has forecast stronger economic growth and improved government finances.

According to Finance Minister Nicola Willis, Treasury's forecasts show smaller near-term deficits and larger later surpluses, with debt beginning to decline as a share of the economy in 2028/29.

The updated forecast predicts average economic growth of 2.6%, 220,000 more jobs, and wages rising faster than prices.

Willis attributed the improved outlook to actual performance, including businesses doing better than expected and feeding into government tax revenue.