The half-yearly Economic and Fiscal Update published overnight in New Zealand makes it clear that the May Budget will be a tough affair even though 2011 will be an election year. It is essential that fiscal policy is kept tight and prudent in the years ahead given that the external deficit will balloon once domestic private sector demand recovers. A debt downgrade, and higher bond yields, would be inevitable next year if New Zealand fails to deliver.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.