New Zealand sees three quarters of negative GDP growth in CY23

The New Zealand Treasury has forecasted three-quarters of a shrinking economy starting in the second quarter of 2023.

Key notes

Lifts planned bond issuance by nz$18bln over 4 years.

Forecasts return to budget surplus in 2024-25.

Fiscal policy will help RBNZ battle inflation.

Government will run contractionary fiscal policy.

To end cut in gasoline tax by march 31.

More to come...