New Zealand’s strong growth potential and resilience has been backed by another international report on the economy.
Credit ratings agency Moody’s has just released its latest opinion on New Zealand, rating us as one of the few countries with its strongest ‘Aaa’ credit rating.
“This report is another example of the rest of the world looking at New Zealand and recognising our economic strength,” Finance Minister Grant Robertson says.
“It follows the IMF’s report last week which said we had solid rates of growth, particularly in the context of the global economic volatility we are seeing.”
The Moody’s report says, New Zealand’s economic strength is “very high” and growth remains “robust”.
The report expects New Zealand’s economy to grow around its potential rate of 2.5%-3% in the next few years, in line with the median for Aaa-rated countries.
The report also says over the longer term, New Zealand’s potential GDP growth is higher than that of many Aaa-rated countries, it assesses New Zealand’s fiscal strength at “very high” and that New Zealand has a very favourable business environment.
“We know that there’ll always be some people who look at the economy with a glass half empty view. It’s refreshing to see reports like this which cut through the political noise and actually recognise our strong economic fundamentals,” Grant says.
“There is no doubt the global economic headwinds, as seen through issues like the US-China trade war, and Brexit, will have some impact on our economy. But we are well positioned.”
“Unemployment is at an eleven-year low, the economy is growing faster than the likes of Australia, the UK and the EU, and the Government is running a surplus and keeping debt under control,” he says.