Prime Minister John Key will not say whether the government still expects to get its books back to surplus in the 2014/15 year.
Speaking to media at a post-Cabinet press conference on Wednesday afternoon, Key would not say what the government's expected track was, telling media to wait for more details in a speech he is set to give on Thursday.
Key noted the IMF's recent downgrades to its global growth forecasts, and noted economic problems in Europe over the last few months.
The government was looking to get back to surplus as quickly as possible he said - "as soon as we can".
Key's comments tomorrow will be influenced by initial Treasury figures as it prepares a Budget policy document to be released in February, with informal forecasts for the New Zealand economy.
Developments in the Eurozone since Treasury's pre election forecasts last year have already seen Treasury tone down its expected growth track for next year.
In December Key was still musing about returning the government's books to surplus earlier than 2014/15.
'Conscious of Europe'
Key said his speech tomorrow would include a general overview of where the economy would head during the next year.
“Obviously we’re conscious like everyone else of the situation in Europe,” he told media.
He had received advice on the implications of the IMF’s revised global growth outlook released in the last week, with those implications to be incorporated in his Thursday speech.
When asked if he still expected a 2014/15 surplus, he replied: “You’ll have to wait 'til tomorrow.”
He himself was optimistic for the New Zealand economy in 2012.
“If you look at what’s happening in Europe, yes, there have been significant issues, and that’s been reflected in Standard & Poor’s downgrading of 15 countries in the Eurozone," Key said.
“Yes, the IMF have come out today and said if they’re not careful then the [expected global] growth that they downgraded ... from 4% to 3.3% could be downgraded to 1.3%,” he said.
“That’s a significant issue. But the IMF also said today that there are a number of options on the table, and those measures need to be taken. So I saw the comments by the chief economist at the IMF as somewhat of a warning shot across the bows of Europe – that they actually need to follow those steps.”
(Updates with quotes from Key, video)
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.