eqc tagged posts
March 18, 2011 New Zealand Finance
New Zealand has been hard hit by its recent earthquake, and is expected to see some economic ill effects from the associated costs.
New Zealand will have to wait an extra year before returning to a budgetary surplus, and will have to endure a further widening of its deficit. The announcement was made by the New Zealand Minister of Finance Bill English while speaking at the ANZ Capital Markets Conference on March 17th.
In order to cover the repairs and arising costs from the recent Christchurch earthquake the government will have to resort to much greater levels of spending, raising the national budget deficit to approximately 8 percent of GDP, or a level of NZD 16 billion. The Minister stated that the country is not expected to see a budgetary surplus until 2016.
Bill English remained opti...Read More
March 3, 2011 New Zealand Taxation
More than a week after the Christchurch earthquake, estimates are beginning to trickle in regarding the financial impact that the disaster will have on New Zealand as a whole. Initial forecasts indicate that the government will be at a loss of at least NZD 5 billion in 2011 alone, with extra expenditures across the country.
According to New Zealand Treasury forecasts, the direct costs with rebuilding the city of Christchurch will be as high as NZD 20 billion, in 2011 alone. After initial Earthquake Commission and insurance payments are made, the government is still expected to payout an extra NZD 5 billion. The Treasury has noted that the cost estimates are still not finalized, and could be revised upwards depending on more comprehensive damage estimates.
The Treasury estimates that under ...Read More