Are budget deficits back for longer?

Are budget deficits back for longer?
Investing in resilience to deal with extreme weather meets shrinking revenues in this year's budget. (Image: Getty)
Cameron Bagrie
The last six months have been notable for the emergence of economic indicators showing an economy off-track and in need of a reset.The rubber band is becoming more taut.Inflation started it: an imbalance between supply and demand.Of late we have seen a blowout in the current account deficit to 8.9% of gross domestic product.Meanwhile, local authorities are grappling with weak financial positions and $1.5 billion in deficits at a time when debt burdens are more of a concern because higher interest rates are biting.Watch local authority rates ris...

More Economy

Adrian Orr’s first commercial post-RBNZ gig revealed
Economy

Adrian Orr’s first commercial post-RBNZ gig revealed

Orr backs the Māori economy in his first executive gig since quitting.

Pattrick Smellie 12 Sep 2025
Retail card spending climbs for third month
Retail

Retail card spending climbs for third month

The total amount spent using electronic cards was $9.3 billion.

Chido Machingura 12 Sep 2025
Receivers hunt for missing cars amid $5.7m company collapse
Economy

Receivers hunt for missing cars amid $5.7m company collapse

The cars were moved to Takanini and Manurewa before the insolvencies.

Gregor Thompson 12 Sep 2025
Majority of CFOs want Govt policy shift, but don't expect it
Finance

Majority of CFOs want Govt policy shift, but don't expect it

The Mood of the CFO survey shows a “two speed” economy with wildly divergent results.

Dileepa Fonseka 10 Sep 2025