New Zealand’s Budget Release: Forecasts 2.3% GDP growth in 2026/27

New Zealand’s Finance Minister Nicola Willis delivered the government's Budget 2026 on Thursday with the details below.

Key quotes

NZ sees 2025/26 operating balance before gains, losses NZ$-15.06 bln (hyefu NZ$-16.93bln).

NZ sees 2026/27 OBEGAL balance NZ$-14.09 bln (hyefu NZ$-12.99bln).

NZ 2025/26 cash balance NZ$-9.31 bln (hyefu NZ$-14.80).

NZ sees 2026/27 GDP +2.3% (hyefu +3.4%).

NZ sees 2025/26 net debt 42.4% of GDP (hyefu 43.3%).

NZ Fin Min says will introduce prudential levy on banks, non-bank deposity takers, insurers and other financial market participants.

NZ Fin Min says new prudential levy to recover around NZ$209 million over next four years.

NZ govt expects to returning operating balance before gains, losses surplus in 2029/2030.

NZ treasury sees inflation peaking at 4.0% in Q2 2026.

NZ DMO plans to issue nz$34 billion worth of bonds in 2026/27, unchanged with December forecast.

NZ DMO planned gross bond issuance for four years to June 30 2030 is NZ$124 bln down from NZ$130 bln forecast in December.

Market reaction

At the time of writing, the NZD/USD pair is trading around 0.5900, up 0.02% on the day.