NZ: Kiwi fiscal books shine again - TDS

Research Team at TDS, views that larger budget surpluses via a stronger economy has lowered New Zealand’s debt ratios and NZGB issuance over the medium term.

Key Quotes

“After much consideration, $NZ1b was allocated towards the net costs associated with the Kaikoura earthquake, hence the 2016/17 budget surplus estimate was lowered from $NZ719m to $NZ473m (+0.2% of GDP).”

“A stronger economy lifted revenue forecasts by nearly $NZ8b across the forecast period, and with such a confluence of positive fundamentals, we see NZGBs as an attractive hold at current yields.”