The Finance Minister of New Zealand Grant Robertson has stated that the country’s economic strength is clear due to the surpluses and the low debt at this point in time. However, Robertson went on to add that he would want to leverage this strength to boost the country’s economy in the months to come. On the other hand, the New Zealand economy has managed to show a lot of strength during the course of the past year when the global economy went through a lot of trouble.
The economic growth is expected to clock 2.5% this year and forecasts suggest that the New Zealand economy could grow by 2.9% in 2020. That is handsome growth and it is hardly surprising that the Finance Minister is now looking for ways to propel the economy. Robertson said, “Our Economic Plan has led to record infrastructure investment to boost the economy. This includes rebuilding hospitals like Middlemore, building new classrooms, and transport investment in areas neglected for too long, like regional roads and rail.” Considering the fact that the country introduced a ‘well being’ budget earlier this year, the latest pronouncements from Robertson are not surprising at all.
While it is true that the New Zealand economy is doing decently at this point in time, some experts have suggested that the real estate sector in the country is currently showing the tendencies of a classic bubble. It is apparently the same in Canada. As everyone knows, the presence of a housing bubble can be catastrophic in the long run if it is not reined in quickly by the regulators and the powers that be in the country. That being said, it is also important to note that the whole thing is still far from being a cause by any genuine concerns.