Budget Preview: Watching for surprises
Graham says the first budget of any new government is always fascinating as it sets the fiscal tone for its whole term. He says it is even more important this time around because of the current economic climate New Zealand is in.
Graham feels that many of the key issues have been well-flagged and as long as they come true then there isn’t likely to be any changes to AXA’s investment approach.
However, surprises may be cause for change. AXA Global Investors takes the view that the economy will stay in recession, but will slowly improve. There is unlikely to be any move back to sustained growth this year, he says.
“The Budget is not likely to change our view (on the prognosis for the economy).” The economy will have twin deficits and debt levels will increase.
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