In its final 2023 Article IV mission statement for New Zealand, the International Monetary Fund (IMF) noted that “New Zealand’s economy is in the midst of a necessary slowdowninduced by policies, after the strong post-pandemic recovery”.
New Zealand likely to slow further in the near term
“New Zealand is likely to continue to slow in the near term as monetary tightening takes hold. Inflation is easing but will remain elevated for some time. The current account balance has deteriorated significantly, reflecting excess demand and factors punctual.”
“Macroeconomic policies should maintain a tight bias. Fiscal policy should prioritize recovery from the floods and cyclone, while limiting other discretionary spending. The monetary policy stance is appropriate and should aim to bring inflation to the aim.”
“The financial sector remains strong, with ample levels of capital and liquidity.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
