XE Data Update - NZ Government’s Multi-Billion Fiscal Stimulus Package Announcement

The NZ Government’s multi-billion fiscal stimulus package has just been announced.

The key points are:

• New Zealand announces NZ$12.1 billion economic package in response to covid-19
• Economic package accounts for 4% of GDP, larger than response to global financial crisis
• To invest NZ$500 million on healthcare, NZ$5.1 billion on wage subsidies, NZ$126 million on leave and self-isolation support
• Support includes NZ$2.8 billion income support package; NZ$2.8 billion in business tax changes
• Measures include NZ$600 million initial support for aviation sector
• Finance Minister Robertson says a recession in New Zealand is almost certain
• Finance Minister says many New Zealanders to lose jobs and some businesses will fail
• Finance Minister says Treasury forecasts show with the package annual growth will drop to 1% by q1 2021
• Finance Minister Robertson says debt will substantially increase; core crown debt will go over 15-25% target
• Finance Minister Robertson says this year's budget to be the second phase of broader recovery package

The NZD is a little higher in immediate response.

Current indicative levels are:

NZD-USD 0.6060 / 0.6085

NZD-AUD 0.9900 / 0.9925

NZD-EUR 0.5425 / 0.5450

NZD-GBP 0.4950 / 0.4975

NZD-JPY 64.80 / 65.05

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