FX.co ★ New Zealand Sees Narrower 2025/26 Budget Gap

New Zealand on Thursday projected a budget deficit of NZ$15.06 billion for the fiscal year ending June 30, 2026, an improvement on the NZ$16.93 billion shortfall forecast in the December half‑year fiscal update, Reuters reported.

Net debt excluding advances is now expected to peak at 46.1% of gross domestic product (GDP) in 2027/28, lower than the December projections of 46.9% of GDP in both 2027/28 and 2028/29. For 2025/26, net debt is forecast at 42.4% of GDP, compared with 43.3% in the December update.

The budget deficit for 2026/27 is projected at NZ$14.09 billion, higher than the earlier estimate of NZ$12.99 billion. The government anticipates a return to surplus in 2029/30.

GDP growth for 2026/27 is forecast at 2.3%, marginally below the December estimate of 2.4%.