NZ: Fiscal pump in the offering - ANZ

Electioneering in New Zealand is in full swing with the Pre-election Economic and Fiscal Update (PREFU) out tomorrow expected to show a plentiful kitty, suggests the analysis team at ANZ.

Key Quotes

“Promises of a little more fiscal spending are on the table, and the election lolly-scramble is well underway. The Budget showed an expansionary fiscal stance in 2018/19 but slightly contractionary on average over the four years to 2020/21, to the tune of -0.2% of GDP per year. It seems inevitable that the fiscal stance will not be that contractionary going by the election promises, which are coming thick and fast.”