16 May 2014

New Zealand economy in indisputably tidy shape
[Reaction on Budget from Sunil Kaushal, Chair, INZBC]

Hon Bill English's message that the government has managed to guide the country through global financial and major local natural disasters in the last six years and the economy is in tidy shape at the end of that period needs to be applauded.

While the ‘Family Budget’ did not come as a surprise to many, economic growth is forecast to peak at a robust 4 percent in the year to June 2014, unemployment is forecast to fall to 4.4 percent by 2018 with very high rates of labour force participation by international standards, inflation remains under control, and government debt falls below 20 percent by the end of the decade.

Comparing the budget with other developed world economies, and particularly our neighbours Australia, this budget shows the New Zealand economy in indisputably tidy shape. This may be one of the reasons why the net immigration flow is very high by historic standards where by more Kiwis are staying aground rather than moving across the ditch to not so greener pastures now. This may be the reason why the government has focused on the domestic growth.

The strong Kiwi dollar has certainly not helped the exporters, it is also fair to say that this is the reason for the export receipts which are in negative in the budget forecast and a minimal surplus has also not helped the cause.

About INZBC
Since 1988, the India New Zealand Business Council (INZBC) has promoted and encouraged trade in goods and services, investment, scientific, technical and economic cooperation between India and New Zealand. INZBC is a member-based independent organisation, not-for-profit incorporated society, which exists for three purposes:
• To lobby and inform government on trade-related matters
• To disseminate information and know-how on doing business between the two countries
• To facilitate business development on behalf of members through leveraging networks

ENDS

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