Finance

The economy has turned a corner with confirmation today New Zealand never was in recession and stronger than expected growth in the June quarter, Finance Minister Grant Robertson said.

An export boost is supporting New Zealand’s economy to grow, adding to signs that the economy has turned a corner and is on a stronger footing as we rebuild from Cyclone Gabrielle and lock in the benefits of multiple new trade deals.

The Pre-election Economic and Fiscal Update released today shows New Zealand’s economy is turning the corner with projected growth meaning no recession, wages ahead of inflation and more people in work, even as the impact of challenging global conditions and the North Island Weather Events weigh on the Government’s books.

Standard and Poor’s is the latest independent credit rating agency to endorse the Government’s economic management in the face of a deteriorating global economy.

Nelson homeowners severely impacted by the extreme weather event of August 2022 will be able to access Government support, including a buyout deal for their damaged homes, subject to agreement from Nelson City Council.

The Government’s prudent and responsible financial management has been acknowledged by the credit rating agency Fitch.

New Zealand is taking the next step towards a fairer tax system with the introduction of legislation that would enable a digital services tax (DST) on large multinational companies.

In the face of a deteriorating global economy and tax revenue failing to meet Treasury’s forecasts, the Government is requiring public agencies to find permanent savings including through cutting back on contractors. It is also reducing future budget allowances, trimming back some programmes, and taking back underspends.

A cost-sharing agreement between the Government and Auckland Council will see the Crown contribute $877 million towards Auckland’s recovery following the Anniversary Day floods and Cyclone Gabrielle, earlier this year.

The Government and Gisborne District Council have agreed to a cost sharing package to further support the Tairāwhiti region’s recovery from Cyclone Gabrielle.

Workers continue to benefit from a resilient economy with wages outpacing inflation again.

Associate Finance Minister David Parker will represent New Zealand at this week’s Pacific Island Forum (PIF) Economic Ministers Meeting in Suva, Fiji.

The Government is welcoming region-wide support in Hawke’s Bay for the agreement on the costs of buying out Category 3 resident

The Government’s careful and responsible financial management has been endorsed by the credit rating agency Moody’s Investors Service.

More than 110,000 people joined the paid workforce in the past year as the number of those in jobs hit a record high.

The Government is welcoming an agreement by Hawke’s Bay mayors and Regional Council chair to take to their councils a package including sharing the cost of buying out high-risk (Category 3) residential properties in the region.

Annual inflation is now at its lowest level since late 2021 as Government actions to help rein in cost of living pressures and support New Zealanders are starting to work.

The annual proactive release of Budget documents is taking place today.

The resilience of the New Zealand economy, including through strong employment data and low levels of government debt, is supporting Kiwis as the moderation in economic activity is being reflected in the Government’s books.

New Zealanders will have up to $100,000 of their deposits in any eligible institution guaranteed in the event that institution fails under legislation passed in Parliament today.

The Government is further supporting businesses, including growers and farmers affected by the North Island weather events earlier this year.

The Reserve Bank’s Monetary Policy Committee remit and charter is largely unchanged following the first five-year review, with only minor changes to the monetary policy framework.

An additional $128 million will be invested into the tertiary sector to increase tuition subsidies at degree-level and above by a further four percent in 2024 and 2025.

Cabinet has agreed to a market study into competition in the banking sector for personal banking services to ensure the market is working well for New Zealanders.