Govt economic management given tick of approval by ratings agency
The Government’s careful and responsible financial management has been endorsed by the credit rating agency Moody’s Investors Service.
Moody’s in their annual credit analysis released this week affirmed their view of the New Zealand economy which has seen them give a local currency credit rating and foreign currency rating at Aaa with a stable outlook.
“The Government’s response to the shocks of the pandemic and then high inflation has been recognised by Moody’s, which notes that the economy’s resilience reflects the strong institutions, sustained policy effectiveness including the Government’s actions to support New Zealanders and our healthy fiscal position compared with that of our peers,” Grant Robertson said.
“The Government has moved to consolidate its spending in response to economic conditions and Moody’s said that it expected this discipline to continue. As I’ve said previously, we will continue to take the hard decisions that are needed, while keeping a balanced approach that delivers the strong public services that New Zealanders deserve.
“The agency also said that the Government’s strong fiscal discipline and comparatively low debt levels means that the country’s credit metrics are in a good position to respond to further negative shocks to the economy.”
The annual credit analysis also reflected Moody’s long-standing views on the issue of high household debt in New Zealand.
“We know this has been a tough time for New Zealanders but we are well positioned to face the challenges ahead, with people in work in record numbers, wages rising, inflation heading in the right direction and public debt levels among the lowest in the world,” Grant Robertson said.