New Zealand cuts borrowing programme by NZ$10bn

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By Frank Jackman
16 Sep 2020

The New Zealand Treasury reduced its 2020/21 funding programme by NZ$10bn ($6.75bn) to NZ$50bn on Wednesday as its economy shows signs of a quicker recovery than seemed likely after the coronavirus lockdown earlier this year.

In its Pre-election Economic and Fiscal Update (PEFU) published alongside the update funding programme, the Treasury announced that it expects GDP to contract 3.6% for June 2020 compared to minus 4.6% forecast in the May budget update. Similarly the unemployment rate will rise only to 7.8% by 2022, ...

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