New Zealand revises lower 2018/19 GDP estimate

New Zealand government has revised lower projections for GDP growth and fiscal surplus. 

The half-year budget economic and fiscal update released soon before press time showed the 2018/19 GDP is now seen at 2.9 percent  – down significantly from the previous projection from 3.8 percent. 

Key points (Source: Reuters)

• sees 2018/19 GDP +2.9 pct (budget +3.8 pct)
• targets net debt of 20 pct of GDP by 2022
• sees 2019/20 OBEGAL surplus NZ$ 4.113 bln (budget NZ$ +5.420 bln)
• sees 2020/21 OBEGAL surplus NZ$ 5.084 bln (budget NZ$ +5.721 bln)
• sees 2018/19 net debt 20.9 % of GDP (budget 21.1 pct)
• 2018/19 cash balance NZ$ -4.993 bln (budget -3.875 bln)
• 2019/20 cash balance NZ$ -2.506 bln (budget -1.727 bln)