good news

More good news

Once the economy keeps ticking over, it’s very hard to unseat a government.

The Government has recorded a smaller-than-expected budget deficit.

After stripping out investment gains and losses, the Crown recorded an operating deficit of $990 million for the six months to December – some 28 percent less than the Treasury forecast.

In December, Treasury forecast a $570 million deficit for the June 2015 financial year.

But Finance Minister Bill English continues to express confidence that the Government would post a surplus despite the tax take being hurt by a slump in dairy prices and low inflation.

Net debt stood at $66.5 billion, or 28.1 percent of Gross Domestic Product (GDP).

The tax take was unexpectedly about $300M higher.  That’s always a good sign.

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More good news – as if we needed it

Statistics New Zealand reports

Strong growth in service industries saw gross domestic product (GDP) rise 0.7 percent in the June 2014 quarter, Statistics New Zealand said today.

“Services make up about two-thirds of the economy and all 11 services industries increased this quarter,” national accounts manager Gary Dunnet said. “The biggest increases were in industries that include advertising, employment services, and software development.”

Overall, services increased 1.4 percent, the highest growth since the December 2006 quarter. Business services (up 4.2 percent) was the main driver, although accommodation and food services increased 3.0 percent. These increases were partly offset by a 3.1 percent decrease in primary industries, where agriculture, forestry, and mining all fell.

GDP growth for the year ended June 2014 was 3.5 percent. This is the highest annual growth since the September 2007 quarter. Read more »

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