New Zealand Says Harsh Lockdown Paying Off as Economy Rebounds
- Half-year economic update predicts more growth, less debt
- Government lowers deficit track, reduces bond issuance program
People sit outside at a bar at Taranaki Street Wharf in Wellington, New Zealand, on Dec. 15.
Photographer: Birgit Krippner/BloombergThis article is for subscribers only.
New Zealand’s government said the fiscal and economic impact of the coronavirus pandemic will be less severe than first feared as its decision to impose one of the world’s strictest lockdowns pays off.
Economic growth will recover more rapidly while budget deficits and net debt will be much lower than expected just three months ago, Finance Minister Grant Robertson said Wednesday in Wellington when presenting the half-year fiscal and economic update. Unemployment will now peak at 6.9% at the end of next year rather than the 7.8% predicted in September.