NZ FinMin Robertson: 'Confident about the resilience' of economy

New Zealand (NZ) Finance Minister Grant Robertson said that he is 'confident about the resilience' of the economy but warned that the supply chain issues could extend into the next year.

Key takeaways

“The Government's committed to achieving its target of producing a Budget surplus in 2025, but warns that "there are no easy decisions.”

“Of course, we are committed to reaching that surplus.”

"And I’m very confident about the resilience of the New Zealand economy to be able to do that. But I’ve also been a Minister of Finance through a global pandemic and I know that forces you…there are no costless decisions, there are no easy decisions. It forces us as a Government to be nimble and adaptable that’s what we’ve been doing…the proof is in the pudding."

“What I accept is that there is a high level of demand in the New Zealand economy," 

"That demand is not currently being met by supply. And those supply chain constraints are largely driven by global factors. There are factors within the domestic economy such as labour supply, which have been an issue. But actually they in turn are driven by the international issues with Covid...”

“…Any spending by definition that any government would do has the potential to fuel inflation. What’s important is to make sure that the investments we make are targeted that they achieve the goals that are wider than just the management of inflation."

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