Treasury updates half-yearly forecasts - books are in better shape

Author
Audrey Young, NZ Herald,
Publish Date
Wed, 16 Dec 2020, 5:00PM
Photo / NZ Herald
Photo / NZ Herald

Treasury updates half-yearly forecasts - books are in better shape

Author
Audrey Young, NZ Herald,
Publish Date
Wed, 16 Dec 2020, 5:00PM

New Zealand's economic outlook is much brighter than forecast in September, with growth forecast to be stronger, unemployment lower and operating deficits slimmer.

At Treasury's half-yearly opening of the books, unemployment is forecast to peak at 6.9 per cent by the end of 2021, compared to 7.8 per cent in September's pre-election fiscal and economic update (Prefu).

Tax revenue is forecast to be $16.8 billion higher over the forecast period - to 2025 - than forecast in Prefu.

Obegal deficits (excluding gains and losses) across the forecast period are all lower, including the current financial year with a $21 billion deficit forecast - which is $10 billion less than forecast in September.

Gdp is forecast to grow by 1.5 per cent in June 2021 year compared with a contraction of 0.5 per cent forecast 0.5 in Prefu.