Bill English says he is "reasonably confident" the Government's economic growth forecasts will hold up. Photo / Mark Mitchell
Bill English says he is "reasonably confident" the Government's economic growth forecasts will hold up. Photo / Mark Mitchell
Finance Minister Bill English says he is "reasonably confident" the Government's economic growth forecasts will hold up despite global uncertainty and the potential for a double-dip recession.
Mr English was questioned in Parliament today by Act MP John Boscawen, who said the Government's reduced debt projections were based on growthforecasts of 4 per cent in 2013 and 3 per cent in 2014.
"At a time of massive global uncertainty, and when the world faces a double-dip recession, how can New Zealanders have confidence in his lower debt projections?" Mr Boscawen asked.
Mr English said the Government wasn't "chasing around every international event" and altering its forecasts.
"What we are doing is focusing on delivering the expenditure constraint that is so important to getting our deficit down and our international debt to stop rising," he said.
"We are reasonably confident in the growth forecasts because they are driven by reasonably good demand for our export products and the impact of the Christchurch rebuild."
Mr English acknowledged that the Government would continue to run budget deficits for the next couple of years.
"But by 2014/15 New Zealand is likely to be one of the few developed countries which has a surplus, and government debt will stop rising," he said.
