The NZ Government’s half-year economic and fiscal update has just been released.

The key points in report are:
• Finance Minister Grant Robertson has announced $12 billion of new investment, with $8 billion for specific capital projects and $4 billion to be added to the multi-year capital allowance
• The $8 billion includes:
o $6.8 billion for new transport projects, with a significant portion for roads and rail.
o $400 million one-off increase to schools’ capital funding
o $300 million for regional investment opportunities
o $300 million for District Health Board asset renewal
o $200 million for public estate decarbonisation
• Sees 2020/21 Operating Balance before Gains and Losses (OBEGAL) surplus $0.06 bln (budget $2.13 bln) – ie reduced surplus
• 2019/20 net debt 19.6 % of GDP (budget 20.4%)
• 2019/20 GDP +2.3% (budget +3.2%)
• NZ to maintain net debt within a range between 15% to 25% of GDP
• NZ Finance Minister says while domestic economy slowing it is still outperforming global peers
• NZ Finance Minister says economy impacted by Brexit and U.S.-china trade war
The NZD is a little higher in immediate response.

Current indicative levels are:

NZD-USD 0.6535 / 0.6560
NZD-AUD 0.9590 / 0.9615
NZD-EUR 0.5890 / 0.5915
NZD-GBP 0.4970 / 0.4995
NZD-JPY 71.05 / 71.30

Please call for further information or pricing.

Below is the link to the full Governments economic and fiscal update:

https://www.beehive.govt.nz/release/12-billion-extra-infrastructure-investment

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