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- NZ FinMin Robertson: Monetary policy is supporting fiscal policy
NZ FinMin Robertson: Monetary policy is supporting fiscal policy
“The strength of the economy is continuing to be reflected in the Crown accounts and shows New Zealand is well-positioned to support New Zealanders to manage the impacts of the challenging global economic environment,” said New Zealand Finance Minister (FinMin) Grant Robertson.
“For the ten months to the end of April, the Operating Balance before Gains and Losses (OBEGAL) deficit was $9.4 billion, $3.2 billion below that forecast in May's Budget 2022,” adds the policymaker on early Wednesday morning in Asia.
Key quotes
We know this is a difficult time for families and business who are doing it tough in the face of rising costs. But we face these pressures with record low unemployment, good growth levels, and lower debt than most as we look to secure our economic future.
Under the old debt measure, which looks through the variability created by the inclusion of the NZ Super Fund, net core Crown debt stood at 37.5 percent of GDP, $1.13 billion above forecast
Our economy has come through the Covid shock better than almost anywhere else. The economy is bigger than before the pandemic, unemployment is at a record low and exports are growing.
The recovery is gaining momentum and the easing of restrictions and opening up to skilled workers and tourists will help business and the economy rebuild.
2022 continues to be a challenging year for many New Zealanders facing the impact of global inflation and our resilience will continue to be tested. Nevertheless, our fiscal position is strong and our debt is substantially below most other nations.
Monetary policy is supporting fiscal policy. It was preferable to have temporary and target support.
FX reaction
NZD/USD fails to cheer the news as it retreats from 0.6500, taking rounds to 0.6490 by the press time.
Read: NZD/USD bulls face-off with bears and meet an important area of resistance
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