New Zealanders have taken a step closer to a new, less stressful life as the country has finally become more confident about its finances.
Key points: New Zealand has a “good deal” of uncertainty over its economic outlook, with a “very uncertain” outlook for the New Zealand dollar, a key indicator of confidenceSource: The Australian National UniversityBut as a result, the government is taking a cautious approach, with Treasurer Tim Groser saying he has been given a new “newfound” optimism in New Zealand.
Key points: Tim Groseber is in his first year as New Zealand TreasurerTim Groser says his confidence in Newzbin is at its highest level yetNew Zealand’s economy has been growing steadily, and growth was predicted to continue in 2018 and 2019, but the country’s currency is now the weakest it has been in a decade.
“Our confidence is at the highest level I’ve seen,” Mr Groser said.
“We’re confident in the economy, and the outlook is good for our economy, but we’re also seeing that uncertainty about what’s going to happen next is very, very, uncertain.”
A “very important part” of New Zealand “is that we are continuing to look for a good deal in terms of the dollar and the environment, and we’re going to continue to look at ways to help New Zealand to maintain that, and also continue to help its businesses.”‘
There’s still some uncertainty’New Zealanders are still holding their noses when it comes to their dollar, and with a growing concern over inflation, the country is taking “some risks” to maintain its growth, Mr Groseer said.
“We are taking some risks to continue our growth,” he said.
The currency has fallen against the US dollar, which is still one of the most important economic indicators in New Zeland.
The economy grew at an annualised rate of 5.7 per cent in the March quarter, and that is a very important measure of Newzbbians confidence.
“It’s one of our big drivers, and it’s something we’re working towards, and certainly we’re in that process of going through the process of looking at ways in which we can help to keep that growth going, and to help our businesses grow,” Mr Grassey said.
But he warned that the currency could fall in the future if a number of factors were not favourable to the economy.
“One thing that we know about the currency is that it has always gone up over time, and if we’re not careful, we’re probably going to see it decline,” he added.
New Zealand will not see the return of the gold price spike in the lead-up to the Lunar New Year holiday, but Mr Grosel said the country was not “going to see that as a big problem” as the price of gold would likely rise.
“What we’ve done is we’ve taken a lot of steps, and I think in the longer term we will see that gold will come back,” he warned.
“But we’re very, extremely cautious, and there’s still a lot more uncertainty about our economy.”
Topics:government-and-politics,economy,business-economics-and.financial-services,financial-markets,government-policy,business,housing-industry,financials,newzlandFirst posted February 18, 2019 12:58:51Contact Amy WilsonMore stories from New Zealand