The economic recovery continues...
The economy is building momentum, after the domestic recession, global financial crisis and Canterbury earthquakes. There are still risks to the outlook, but the recovery is expected to strengthen over the coming years.
GDP growth is forecast to increase to above 3 per cent...
- Real GDP growth (annual average % change, production measures)
...and will outpace growth in many of our trading partners for the next few years.
- Forecast trading partner growth (calendar years)
Employment growth will accelerate, especially as the Canterbury rebuild picks up...
- Total employment (seasonally adjusted, June quarters)
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...and household saving will continue to improve, leaving New Zealanders better off.
- Household saving ratio (March years)
Note: The household saving rate is the difference between the disposable income and expenditure of households, as a percentage of disposable income.
However, the Christchurch rebuild will put pressure on New Zealand's total external debt, especially after 2014. This reinforces the importance of bringing the government accounts back into surplus and getting public debt under control.
- Net international investment position
Delivering a stronger and more prosperous New Zealand will ultimately depend on the confidence businesses have to invest and employ. The Government has a clear plan to build this confidence, based around four key priorities:
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Responsibly managing the Government's finances
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Building a more productive and competitive economy
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Delivering better public services within tight fiscal constraints
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Rebuilding Christchurch
