NZ economic woes cast shadow on its budget

New Zealand published on Dec 15 new financial forecasts that show no return to a budget surplus in the next five years, as the effects of a stuttering economy offset the government's efforts to keep a tight hold on its fiscal purse.

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The South Pacific nation's economy has contracted in three of the last five quarters, and its recovery has been hobbled by tepid consumption and heightened uncertainty about US trade policy and the global economic outlook.

However, the government is hoping that the economy is on the mend, with its third-quarter data due on Dec 18 expected to show growth, and the Treasury is forecasting improved economic growth over the next 18 months.