Standard and Poor’s (S&P) has given New Zealand a AAA long-term local currency rating and AA+ foreign currency rating, both with a stable outlook. This follows similar ratings from Fitch and Moody’s.
Grant Robertson stated that these ratings show credit agencies’ trust in New Zealand’s economic strength during global uncertainties. S&P highlighted New Zealand’s strong institutional framework, healthy economy, and low government debt. The country’s quick recovery from the COVID-19 pandemic and its strong governance were also mentioned.
S&P expects New Zealand’s deficit to reduce due to the government’s controlled spending. The government has identified almost $4 billion in savings to help control inflation and meet its financial targets, aiming to keep debt under 30% of GDP.
Despite a $2.2 billion drop in core tax revenue for the 11 months leading to May, New Zealand’s public debt is still seen as low compared to other highly-rated countries.
Robertson acknowledged future economic challenges but expressed confidence in New Zealand’s ability to tackle them. He emphasised the government’s commitment to fiscal responsibility and supporting its citizens.
