2020 “Rebuilding Together” Budget
Alliott NZ Summary
As expected, the 2020 Budget has been a high spending one with a deficit forecasted to be $29.6 billion in 2021.
Unemployment is projected to increase significantly, peaking at 9.8 per cent in the September 2020 quarter before recovering thereafter.
New Zealand’s real GDP growth rate is projected to decline from 2.8 per cent in the year ending June 2019 to -4.6 per cent in the year ending June 2020. Annual real GDP growth is not forecast to become positive until the year ending June 2022.
The Government’s net core debt is predicted to be 30.2 per cent of GDP in 2019/20, 49.8 per cent of GDP in 2021/22 and 53.6 per cent of GDP in 2023/24.