NZ Govt Pre-election, Economic Fiscal Forecasts

NZ Govt Pre-election, Economic Fiscal Forecasts

The NZ Government Pre-election, Economic Fiscal Update has just been released.

The key points are:
2016/17 operating surplus before gains, losses (obegal) NZ$+3.706 bln (budget forecast $+1.621 bln)
2017/18 Obegal surplus nz$2.869 bln (budget forecast NZ$+2.858 bln)
2018/19 Obegal surplus nz$3.515 bln (budget forecast NZ$+4.051 bln)
2016/17 net debt 22.5% of GDP (budget forecast 23.2%)
2016/17 cash balance NZ$+1.497 bln (budget forecast NZ$+ 0.071 bln)
2017/18 cash balance NZ$-1.356 bln (budget forecast NZ$-1.789 bln)
2017/18 year GDP growth at 3.5% (budget forecast 3.7%)

NZ Fin Min says government considering second family income package in 2020
NZ Fin Min says will not consider tax cuts until 2020 unless economic conditions are better than anticipated
The NZD is little changed immediate response to this release, however the NZDUSD has subsequently fallen sharply on the back of a broadly stronger USD and falling commodity prices (iron ore down 4.3%).

Current indicative rates are:

NZD-USD 0.7245 / 0.7270
NZD-AUD 0.9185 / 0.9210
NZD-EUR 0.6160 / 0.66185
NZD-GBP 0.5650 / 0.5675
NZD-JPY 79.40 / 79.65

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