New Zealand NZD

New Zealand Budget 2024

Impact:
Low

Next Release:

Date:
Period:
What Does It Measure?
The New Zealand Budget 2024 measures the government's financial plan for the fiscal year, assessing key areas such as revenue, expenditures, deficits or surpluses, and overall economic priorities. It clarifies planned investments in infrastructure, health, education, and welfare, serving as an indicator of the government's fiscal policy intent and economic direction at the national level.
Frequency
The budget is released annually, typically in May, and includes a preliminary overview followed by a final document detailing specific allocations and forecasts.
Why Do Traders Care?
Traders pay close attention to the budget because it significantly influences economic policy, affecting currency valuations (such as the NZD), stock performance, and investor sentiment. A budget that promotes spending and growth may lead to bullish responses in financial markets, while austerity measures could induce bearish outcomes.
What Is It Derived From?
The budget is derived from comprehensive economic analyses, projections concerning national revenue (from taxes and other sources), and anticipated government expenditures across various sectors. The estimates are based on inputs from economic advisors, historical data trends, and social necessity assessments.
Description
The New Zealand Budget 2024 provides a holistic view of the government’s revenue-generating strategies, spending priorities, and long-term fiscal sustainability. It may also outline fiscal impacts on macroeconomic variables such as inflation and gross domestic product (GDP), influencing both market behaviors and economic forecasts.
Additional Notes
The budget serves as a significant leading economic indicator, reflecting government priorities and potential impacts on broader economic conditions. It is essential for understanding how fiscal policies might interact with monetary policies and other economic metrics, such as GDP growth and unemployment figures.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for NZD, Bullish for Stocks. Lower than expected: Bearish for NZD, Bearish for Stocks. A hawkish tone: Signaling higher interest rates or inflation concerns, is usually good for the NZD but bad for Stocks due to higher borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise