The government's Half Yearly Economic and Fiscal Update will be released on 14 December; Finance Minster Bill English said this morning.
Speaking to Parliament's finance and expenditure select committee, Mr English said the updated forecasts would reflec
The government’s Half Yearly Economic and Fiscal Update will be released on 14 December; Finance Minster Bill English said this morning.
Speaking to Parliament’s finance and expenditure select committee, Mr English said the updated forecasts would reflect a wider government deficit than was expected at the time of this year’s Budget in May.
“We would expect there may be some softening of the forecast tax revenue in the half yearly update,” he said.
The government’s cash deficit – which most recently was forecast to be $13 billion – could also be a little higher, he said.
Mr English reiterated the “rebalancing” analysis of the economic recovery, with
the domestic sector – retail, housing and construction being the main areas – suffering as New Zealanders use any spare cash to pay off debt and/or build up savings.
“It does mean a more muted recovery but it also means a more sild basis for longer term growth.”
He also noted the large improvements in the terms of trade, which have yet to be felt in the wider economy.
“My own view is that as the export season get under way – which is only just happening now, into November- you will see improvements in their profit outlook and confidence.”
“But the Treasury will do the forecast and we will see what they come up with.”
