Daily Management Review

New Zealand forecasts recession in 2023


The New Zealand government issued a forecast, saying that the country will go into recession in 2023 but anticipating a budget surplus in the 2024–2025 fiscal year.

The Labor Party of Prime Minister Jacinda Ardern will face new difficulties as a result of restricted spending and the approaching recession, and general elections will be held in 2019.

The second, third, and fourth quarters of 2023 will see a decline in the economy, as shown by a recent projection from the Ministry of Finance. Compared to the Finance Ministry, the Reserve Bank of New Zealand (RBNZ) is even more negative.

2023 will be a challenging year for many New Zealand households, said Finance Minister Grant Robertson during a press conference. Hard budget choices will be necessary for a return to surplus, he said. According to Robertson, ministries would be told to find money within their current budgets for new projects the next year.

source: reuters.com