New Zealand 2024 Budget: Treasury sees inflation falling to below 3% in Q3 2024, to 2% around 2026

New Zealand (NZ) Finance Minister Nicola Willis presented the government’s annual Budget report for 2024, with key highlights enlisted below.

NZ sees 2023/24 operating balance before gains, losses NZ$-11.07 bln (HYEFU NZ$-9.32 bln).

NZ sees 2024/25 GDP 1.7% (HYEFU 1.5%).

NZ government forecasts return to obegal surplus in 2027/28 (HYEFU 2026/27).

NZ sees 2023/24 net debt 43.1% of GDP (HYEFU 43.5%).

NZ unemployment rate seen at 5.2% in 2024/25 (hyefu 5.2%).

Determined to return obegal to surplus in 2027-28.

Tax relief fully funded from savings, revenue initiatives.

NZ treasury sees NZ GDP contracting in H1 2024, growth in H2 2024.

NZ treasury sees inflation falling to below 3% in Q3 2024, to 2% around 2026.

Separately, New Zelanad’s Debt Management Office (DMO) said that the 2024/25 gross bond issuance increases to NZ$38 bln from NZ$36 bln in half-year update.

The NZ DMO planned gross bond issuance for four years to June 2028 now totals NZ$126 bln up from NZ$114 bln in half year update.

Market reaction

New Zealand Dollar paid little heed to the Budget release, with NZD/USD lurking flat near 0.6100 at the press time.