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Wellington, March 25, 2017
Leading credit rating agency Moody’s Investors Service has reaffirmed New Zealand’s highest possible AAA sovereign credit rating with a stable outlook, highlighting the country’s high economic resilience, effective policy making and very strong fiscal position.
Finance Minister Steven Joyce described the rating as “a very positive endorsement of New Zealand’s economic performance and the Government’s policy settings.
“Moody’s expects that New Zealand will be one of the fastest-growing AAA rated economies over the next few years. It notes that New Zealand’s strong population growth, including through immigration, lifts the country’s economic potential. The Agency also notes that New Zealand’s number one world ranking for ease of doing business supports the country’s robust growth outlook,” he said.
Budget Surplus
Mr Joyce said that Moody’s drew attention to New Zealand’s targeting of and subsequent achievement of a Budget surplus in 2014-2015 as evidence of the country’s effective policy making.
“Finally, it notes that the government’s focus on preserving strong public finances provides New Zealand with the room to buffer the economy from any future economic shocks or natural disasters,” he said.
Mr Joyce said that the government will continue to implement its strong economic plan,
focusing on building better public services and infrastructure, steadily reducing net debt, and ensuring the benefits of economic growth are shared with Kiwi families.
Tribute to Kiwis
“This latest report from Moody’s underlines the benefits of all the work New Zealand has done over the last few years to strengthen our economy and our country’s finances. It is a tribute to the hard work of all Kiwis and a position from which we can all take real confidence,” Mr Joyce said.
Moody’s credit analysis of New Zealand is available here.
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Photo Caption:
Steven Joyce
