Did Treasury go far enough?

(Image: NZME)

Wed, 18 Dec 2024

Did the Treasury go far enough with its revision to potential growth in the Half Year Economic and Fiscal Update? I wrote earlier that the key numbers in the Half Year Economic and Fiscal Update (Hyefu) would be productivity and potential growth. They define the money line for the finance minister. Actual growth converges to potential growth, so the faster the latter is, the faster the former can go without overheating and generating inflation.Net debt rises Potential growth is 2-2.2% over the projection period in the Hyefu. In the Bu...

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