Economists were largely upbeat about the government’s 2019 budget but say Treasury’s forecasts may be too optimistic.
The Treasury lowered its growth forecasts but still sees gross domestic product growth of 3 per cent in the 12 months to June 2020 and 2.8 per cent the following year.
Ramped up government spending also saw it narrow the predicted surplus over the next few years, essentially narrowing the operating balance excluding gains and losses by $9.2 billion between now and June 2023.
As a percentage of GDP, net core Crown debt continues to hover just above 20 per cent until it declines to 19.9 per cent in the 12 months to June 2022.
By: Rebecca Howard, BusinessDesk, NZ Herald
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