New Zealand annual 2018 budget forecast on 17.05.2018
- FY17/18 NZ$3.1B v prior forecast NZ$2.9B
- FY18/19 NZ$3.7B v prior forecast NZ$2.8B
- Sees bigger surpluses in near term
- Net Debt forecast 20.8% vs 21.7% prior
- Budget balance NZ$-1.25B vs -2.65 NZ$B prior
- Guides 2017/18 GDP 2.6% (prior 3.3%)
- Guides 2018/19 GDP 3.8% (prior 3.4%)
- The Treasury forecasts economic growth of about 3.0 per cent per year on average over the period to June 2022. The New Zealand economy is forecast to grow at a rate faster than that expected for our major trading partners.
- Unemployment is expected to remain steady over 2018 before falling to 4.1 per cent in late 2019, in line with the Government’s target of reducing the unemployment rate to 4.0 per cent by the end of this parliamentary term. Wage growth is forecast to be higher than inflation each year and to gradually rise to 3.4 per cent in 2022.
Higher growth, higher wages and better surpluses expected sees kiwi race 0.4% higher