New Zealand lowers its deficit and debt forecast for the 2026/27 fiscal year, expecting a return to surplus in the 2028/29 fiscal year.

(1) The New Zealand government expects an operating balance before gains and losses of -NZD 8.7 billion for the 2026/27 fiscal year, better than the projected -NZD 14.09 billion. (2) The cash balance for the 2026/27 fiscal year is forecast at -NZD 21.99 billion, better than the projected -NZD 24.22 billion. (3) Net debt is expected to be 43.7% of GDP for the 2026/27 fiscal year, lower than the projected 45.6%. (4) The average unemployment rate for 2026/27 is forecast at 5.2%, higher than the budget target of 5.0%. (5) GDP growth for the 2026/27 fiscal year is expected to be 2.3%, consistent with the projected growth rate. (6) The New Zealand government predicts that the fiscal surplus will return to an above-surplus level in the 2028/29 fiscal year.