New Zealand Slashes Growth Forecasts in 2026 Budget
Finance Minister Nicola Willis unveiled a budget focused on long-term stability rather than short-term incentives as the Iran conflict stokes inflation. The government lowered GDP growth forecasts to 2.3 percent for 2027 while aiming for a fiscal surplus by 2030 through deep public service cuts.
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New Zealand slashed its growth forecasts and tightened spending on Thursday to counter economic shocks linked to the conflict in Iran. The government now expects GDP to rise 2.3% in the year ending June 30, 2027, down from a previous 3.4% estimate. Investors face a cooling economy as policymakers prioritize fiscal discipline over voter incentives ahead of the election on November 7.
