Trade Wars Dampen New Zealand's Economic Recovery

New Zealand's economic recovery has slowed down due to US President Donald Trump's trade wars and actual wars, leading to higher inflation. According to the pre-election update, unemployment peaked at a slightly higher level than previously forecasted in May.

The house price growth, once predicted to hit 4 percent next year, has been revised to 0.6 percent, which would be the first growth at a national level for several years.

Finance Minister Nicola Willis' campaign to return to surplus by mid-2029 has received a boost from the latest forecasts, predicting a surplus of $4 billion in the 2028/29 year, up from $2.6b in May's Budget estimate.