New Zealand budget - Treasury forecasts inflation below 3% in Q3 2024 ...Middle East

New Zealand forecast a budget deficit of NZ$11.07($7.04 billion) for the fiscal year ending June 30 2024, wider than a deficit of NZ$9.32 billion forecast in its half-year fiscal update in December.Treasury inflation forecasts:falling below 3% in Q3 this yearto 2% around 2026sees a contraction in GDP in H1 of 2024, return to growth in H2 of this yearNZD/USD is little changed:Tax relief for Kiwis has contributed to the wider deficit and is a fiscal stimulus for the year ahead. This is not a desired outcome for the Reserve Bank of New Zealand trying to drive inflation down. This article was written by Eamonn Sheridan at www.forexlive.com.

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