CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. New Zealand Surplus Possible, Despite Hiccough

New Zealand Surplus Possible, Despite Hiccough

by Mary Swire, Tax-News.com, Hong Kong

19 December 2014


New Zealand's fiscal position remains strong, despite an announcement from the Government that it will push back the timeframe for achieving a fiscal surplus, Fitch Ratings has said.

The changes in the nation's fiscal projections, as indicated in the Treasury's Half-Year Economic and Fiscal update (HYEFU), are relatively small, and the commitment to fiscal consolidation continues to strengthen the resilience of the credit profile, the ratings agency said.

In the HYEFU, released on 16 December, the Government said that there will be a significant decline in revenues from exports due largely to a nearly 50 percent drop in dairy prices. As a result the Government is now projecting a fiscal deficit in the 2015 fiscal year, after originally planning for a surplus.

The New Zealand Government is still aiming to achieve a fiscal surplus, but not until the 2016 fiscal year, starting with a small surplus worth 0.2 percent of gross domestic product, before rising to 1.4 percent in the 2019 fiscal year. Political backing for fiscal consolidation remains strong also, Fitch Ratings said.

TAGS: Currency | tax | economics | fiscal policy | gross domestic product (GDP) | budget | New Zealand

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »