WELLINGTON, Feb. 28 (Xinhua) -- The latest Crown accounts show the New Zealand government's financial position and underlying economic fundamentals remain sound, providing protection from global volatility, Finance Minister Grant Robertson said Thursday.
The Crown's financial results for the seven months to Jan. 31, released by the Treasury, showed core Crown tax revenue and expenses within 0.5 percent and 1.3 percent of the Treasury's respective Half Year Economic and Fiscal Update (HYEFU) forecasts, and a 1.9-billion-New Zealand dollar (1.3 billion U.S. dollars) operating balance before gains and losses surplus.
Net core Crown debt is in line with the HYEFU forecast at 20.7 percent of Gross Domestic Product (GDP). The forecasts show the government is on track to meet the Budget Responsibility Rule of reducing net debt to 20 percent of GDP within five years of taking office, Robertson said.
"Our responsible fiscal management of running surpluses and keeping expenses and debt under control is necessary and effective."
The latest New Zealand Institute of Economic Research's Quarterly Predictions forecast economic growth of around 2.7 percent over the next five years, noting that while this is slightly lower due to global volatility, it still represents the longest stretch of growth in New Zealand since 1992, the minister said.
The Quarterly Predictions also noted the business confidence improved in the December quarter and the labor market is expected to remain solid.
"The New Zealand economy is performing well, meaning we are well-placed for any increased international economic slowdown," Robertson added.
