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The latest release of the Government’s books before the Budget shows economic activity slowing down, but Finance Minister Grant Robertson says New Zealand is still well positioned to deal with the challenges ahead.
Those challenges include the cost of living, the impact of recent extreme weather and the uncertain global economy.
For the nine months to the end of March, core Crown tax revenue was $2.3 billion below forecast, partly offset by core Crown expenses being $0.7 billion below forecast.
The overall deficit was $3.4 billion, which was $2.5 billion higher than forecast at December’s Half Year Economic and Fiscal Update and $4.7 billion lower than for the same period a year ago.
Net debt was 19.1 percent of GDP, below the forecast of 20.4 percent of GDP.
Mr Robertson says unemployment is near record lows, inflation is now heading in the right direction, tourists are returning, overseas workers are arriving in greater numbers and the deficit is significantly smaller than it was at the same time a year ago and debt levels are among the lowest in the world.
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