WELLINGTON, Oct. 8 (Xinhua) -- A strong surplus and low debt show the economy is performing well and the government is in a good position to meet the challenges of global economic uncertainty, Finance Minister Grant Robertson said on Tuesday.
"The surplus and low levels of debt show the economy is in good shape. This allows the government to spend more on infrastructure and make record investments in health and education," Robertson said in a statement.
The Crown accounts for the year to June 2019 show a 7.5 billion NZ dollar (4.7 billion U.S. dollar) surplus. This is due to the stronger economy, and also includes a number of one-off factors including revaluation of the country's rail assets, he said.
Net debt has fallen further to sit at 19.2 percent of GDP, down from 19.9 percent a year ago and below the 20 percent target in the Budget Responsibility Rules, statistics show.
Corporate profits, employment and wage growth were higher than expected in the May Budget. This contributed to tax revenue coming in 2.1 percent above forecast.
"The results show businesses are investing, employing more workers and paying higher wages, while at the same time reporting stronger profits," Robertson said.
"This is a timely reminder that the underlying fundamentals of the New Zealand economy are solid. We are growing faster than the likes of Australia, the UK, Canada and the EU, which is being recognized by international investors and agencies like the IMF and Moody's," he added.
"Unemployment, interest rates and government debt are all low, giving the economy a solid platform to keep growing and face any global headwinds," the minister said.
The accounts show the government continues to increase capital investment, including in new hospital buildings, classrooms, roads and rail and the Super Fund, which was up 13.7 percent over the year.
