Hon Bill English
Minister of Finance
29 January 2014
Moody’s Aaa rating confirms NZ on right track
Moody’s Investors Service says New Zealand’s economy and government finances are on an improving trend, which confirms
the Government’s responsible economic and fiscal programme is on the right track, Finance Minister Bill English says.
New Zealand is one of only 10 countries with the top Aaa rating and a stable outlook by Moody’s. It is also rated AA by
Standard and Poor’s.
“The Government’s economic programme is supporting this growth and the improvement in the fiscal position and it’s
encouraging that this has again been recognised by Moody’s,” Mr English says.
“As Moody’s notes in its credit analysis today, economic growth is accelerating, the Government’s books are expected to
be in surplus next year and the ratio of government debt to GDP will peak below the median for Aaa-rated countries.
“Overall, Moody’s rates New Zealand’s economic strength as high, despite it being the second smallest country rated Aaa
– behind Luxembourg.
“Despite this, and its dependence on agricultural exports, Moody’s also notes that New Zealand has displayed resilience
over the past few years in recovering from its domestic recession of 2008, the global financial crisis and the
Canterbury earthquakes.
“And, as Moody’s says, New Zealand remains highly competitive, being ranked 18 out of 148 countries in the most recent
World Economic Forum’s global competitiveness index and third in the World Bank’s ease of doing business report.”
Moody’s reiterates that New Zealand faces challenges, including its continued reliance on foreign savings and overseas
borrowing.
“The longstanding current account deficit has improved in recent years, as has New Zealand’s net international
liabilities position,” Mr English says.
“But we need to continue with policies to further improve these indicators by building a more competitive export sector
so New Zealand can earn its way in the world.”
Moody’s media release: https://www.moodys.com/research/Moodys-New-Zealands-economy-and-finances-improving--PR_291309
ENDS