NZ budget forecasts 2016/17 is for a surplus of NZ$719mln

New Zealand Budget has been released, with the government expecting to post a NZ$668 million surplus in the year to June 2016, after a prior forecast of NZ$401 million deficit in December.

Forecasts is for NZ$719 million surplus in the year to June 2017 (vs. prior forecast of a NZ$356 million surplus. Meanwhile, forecasts 2017-18 is for a budget surplus of NZ$2.46b.

New Zealand also expects GDP growth of 2.9% in 2016, 3.3% in 2017. As per inflation, forecast is for 2% in 2017. New Zealand also expects to reduce the unemployment rate to below 5% in 2018.