New Zealand well-placed to weather tough 2023

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© Reuters. FILE PHOTO: New Zealand’s finance minister, Grant Robertson, speaks about the “wellbeing” budget in Wellington, New Zealand, May 30, 2019. REUTERS/Charlotte Greenfield/File Photo

By Lewis Jackson

SYDNEY (Reuters) -New Zealand Finance Minister Grant Robertson said the world economy faced a “year of reckoning” in 2023 but the small island nation is well-placed to fend off trouble among trading partners given its robust growth and a stable financial system.

Fronting a parliamentary committee on Wednesday, Robertson highlighted New Zealand’s strong economy.

“These accounts and economic figures are not ends in themselves, they are a means to an end,” said Robertson.

“And one of those ends includes New Zealand’s ability to stand up to the global recession which is on our doorstep.”

Minutes after Robertson spoke, the Reserve Bank of New Zealand struck a hawkish note, raising rates by 75 basis points, citing continued broad-based inflationary pressure.

Updated RBNZ forecasts show the New Zealand economy falling into recession in September 2023.

“Countries will either be in recession or feel like they are. This is the year of reckoning,” said Roberson in reference to 2023.

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