Fiscal Update: Government plots a steady course as surplus pushed and optimism held

Finance Minister Nicola Willis expressed optimism for the economy in 2026, at Treasury's half-year unveiling of the government books on Tuesday. (Image: NZME)

Thomas Manch

Tue, 16 Dec 2025

The Government continues to plot a steady-as-she goes course through a slightly worsening economic forecast, as it hopes for “upward surprises” in the coming years.The promised economic recovery will come in 2026, Treasury has said in its Half-Year Fiscal and Economic Update (HYEFU) published Tuesday, but it will not be as substantial as previously forecast after a substantial mid-year slowdown made for a flat 2025.Further delay in the cyclical upturn has pushed out the prospect of the government books tilting into surplus another y...

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