Continuing gloom on the global economic front is concerning, but closer to home Trans Tasman points out some better news:
NZers haven’t had much to celebrate in the way of economic news lately, but this week there was some cheer on hand. The deficit in the Crown accounts for the 10 months to April was $1.4bn lower than forecast, largely as a result of higher-than-expected tax, and lower-than-expected core Crown expenses. It suggests the Govt is on track for the $8.5bn deficit signalled in the Budget last month, rather than the $10bn-$12bn deficit which was on the cards as recently as February.
Higher than expected tax indicates businesses doing better which, combined with lower government spending, is an important ingredient in our economic recovery.