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NZ Forecasts Smaller Deficit, Lower Debt
29 Sep
Summary
- New Zealand's Treasury projects a smaller budget deficit for 2027.
- The government anticipates a return to surplus by 2028-29.
- Economic growth forecasts are upbeat ahead of the general election.
New Zealand's Treasury has released an updated financial forecast, indicating a more favorable fiscal position than previously projected. The government now anticipates an operating balance before gains and losses (OBEGAL) deficit of NZ$8.73 billion for the fiscal year ending June 30, 2027. This represents a notable reduction from the NZ$14.09 billion deficit forecast made in May.
Further reinforcing a positive economic outlook, the Treasury projects a return to an OBEGAL surplus in the 2028-29 fiscal year. This earlier-than-expected surplus was previously forecast for 2029-2030 in the May Budget. These revised figures are presented with an upbeat tone regarding economic growth prospects, coming just ahead of New Zealand's general election scheduled for November.
