New Zealand: 2013 Article IV Consultation

IMF Staff Country Reports, May 14, 2013

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New Zealand: 2013 Article IV Consultation

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Bibliographic details

• Published: May 14, 2013
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484308837.002

Macroeconomic performance and near-term outlook

• New Zealand’s economy continued to grow at a moderate rate.
• Growth partly reflected the effects of the recent drought and inflation.
• Macroeconomic policy has been framed to absorb adverse shocks, with flexible exchange rates to serve as buffer.

Fiscal stance and public debt

• The planned pace of deficit reduction is balanced between sustaining aggregate demand and limiting public debt growth.

Financial sector resilience

• Recent stress tests showed that major banks could withstand a sizable shock to:
  • output,
  • terms of trade,
  • rising unemployment,
  • a fall in property prices.

Policy implications and emphasis

• Use of flexible exchange rates as a shock absorber is central to macro policy.
• Fiscal consolidation strategy aims to strike a balance between demand support and debt containment.

Content in this bundle

• _cr13117 — Risk Assessment Matrix and Key Findings
  • _cr13117 — Risk Assessment Matrix and Key Findings (Markdown version)
  • _cr13117 — Risk Assessment Matrix and Key Findings (PDF)