FILE PHOTO: New Zealand's finance minister, Grant Robertson, speaks about the "wellbeing" budget in Wellington, New Zealand, May 30, 2019.
That has heaped pressure on New Zealand’s finances, as the government has had to navigate many challenges including three-decade high inflation, sharply rising borrowing costs, a stuttering economy and falling tax revenue.
However, Treasury sees inflation slowing to 3.3% by mid-2024, from the current blistering 6.7% pace, levels not seen since the early 1990s.
Much of the worsening in the accounts is due to falling tax revenue as the economy slows.
S&P Global Ratings retained New Zealand’s AAA ratings, but warned of pressure ahead.