New Zealand has revised its fiscal outlook, projecting a smaller budget deficit and adjusting bond issuance plans as it navigates a still-challenging economic environment.
On Thursday, the government forecast a budget deficit of NZ$14.74 billion for the fiscal year ending June 30, 2025, a notable improvement from the NZ$17.32 billion shortfall projected in its December half-year update. The narrowing reflects improved revenue expectations and a slightly firmer economic backdrop.
At the same time, net debt is now forecast to peak at 46% of GDP in 2027/28, slightly later but marginally lower than the 46.5% peak in 2026/27 projected last December. The shift suggests a more measured fiscal consolidation path.
The New Zealand Debt Management Office (NZDMO) also trimmed its near-term bond issuance plans. For the 2025/26 fiscal year, gross bond issuance is expected to total NZ$38 billion, down from NZ$40 billion projected in the December update.
However, the government raised its total bond issuance forecast for the four-year period to June 2029 to NZ$132 billion, up from NZ$128 billion. The revision reflects longer-term funding needs amid a broader economic transition and continued infrastructure investment.
Despite the moderated borrowing profile in the near term, officials signaled a continued commitment to fiscal discipline and longer-term debt sustainability.
This article was written by Eamonn Sheridan at www.forexlive.com.Hence then, the article about new zealand narrows budget deficit forecast eases near term bond issuance plans was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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