Building faster, more sustainable growth

New Zealand's economic growth and our fiscal performance this year are a bit below forecasts in Budget 2010 – but they are expected to improve over the next few years.

The Half-Year Economic and Fiscal Update issued this week shows that events of the past six months – particularly the Canterbury earthquake and a more subdued than expected domestic recovery – have taken New Zealand’s fiscal position to the outer limit of what the Government would regard as acceptable. Some of this is due to New Zealanders saving and investing more, and borrowing and spending a bit less – which is actually a good thing.

It reinforces the need for the Government to press on with our six-point economic programme to build faster and more sustainable economic growth, create jobs, and raise incomes.

The Budget next year will clearly outline the next steps in the Government’s programme to lift economic growth, with a particular focus on improving national savings and reducing our reliance on foreign debt.

More information: http://www.beehive.govt.nz/release/govt-will-play-its-part-lifting-national-savings