Moody’s on NZ: Half-year economic & fiscal update for 2016-17 demonstrates strong public finances

The US-based ratings agency, Moody’s Investors Service, published its latest report on the Government of New Zealand, titled ‘Government of New Zealand (NZ): Strong Public Finances, Robust Economic Growth Bolster Sovereign Credit Profile’ on Monday.

Key Points from the report:

Government forecasts average annual GDP growth of 3.5% over 2017 and 2018, is slightly higher than Moody's forecast and points to some downside risk to the revenue projections

New Zealand will remain among the fastest growing economies in Moody's Aaa-rated universe

The half-year economic and fiscal update (HYEFU) for 2016-2017 demonstrates strong public finances, providing the government with significant financial flexibility to face negative shocks such as the Kaikoura earthquake

Moody's expects policies and reforms that foster economic growth and maintain sound public finances to remain a key focus under a new leadership