New Zealand government flags significant infrastructure spending By Reuters

New Zealand government flags significant infrastructure spending

MELBOURNE, Nov 30 (Reuters) – The New Zealand government plans a significant increase in infrastructure spending, making use of low borrowing costs to “build” the country, Finance Minister Grant Robertson said on Saturday.

Economic output of the Pacific country has been ebbing this year with activity in the service industries, construction, mining and manufacturing – main contributors to gross domestic product (GDP) growth – idling.

Year-on-year GDP growth slowed to 2.1% in the second quarter, the lowest since 2013, hurt by record low business confidence, headwinds from international trade tensions, a slowing Chinese economy and Brexit. central bank, which surprised the market earlier this month by not easing monetary policy, has repeatedly called on the government to spend more to drive economic growth.

“I can announce today that the government will significantly increase spending on infrastructure,” Robertson told his governing Labour Party’s annual conference, according to a transcript of the speech posted on the party’s website.

“We are currently finalising the specific projects that the package will fund but I can tell you this – it will be significant.”

Robertson said more details would be presented in December, but added that this is the time to “take the next step forward in our legacy of building” the country.

“Right now, we can borrow at an interest rate of 1.3% for 10 years. Just think about that for a minute,” Robertson said.

“We have the lowest borrowing costs in New Zealand’s history, so it is time to invest.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

We will be happy to hear your thoughts

Leave a reply