KEY POINTS:
Key points from Treasury's Pre-Election Fiscal and Economic Update:
* Gross debt rising from 17.4 per cent of GDP to 24.3 per cent by 2013.
* Economic growth of only 0.1 per cent in the 2008/2009 year, rising to 1.8 per cent and then 3.3 per cent in the following years.
* The budget deficit after bookkeeping changes and excluding the New Zealand Superannuation Fund forecast to be $64 million next year rising to $3.2 billion by 2012/2013. The deficit is the first in this measure since 1994.
* Last year's cash surplus of $2 billion falls back to a cash deficit of $5.9 billion in 2008/2009 and further deficits over the next four years rising to $7.3 billion by 2012. This compares to the average $3.5 billion forecast in the May budget.
* Unemployment rising to 5.1 per cent in 2009/2010 and beginning to decline in 2011/2012 to 4.8 per cent.
* Both the dollar and 90 day interest rates continuing to decline.
* 90-day interest rates falling from 8.8 per cent to 6.3 per cent by 2013
* Inflation forecast to rise to 4.5 per cent by March 2009 dropping back to 2.3 per cent in the following year.
*The current account balance rises to a deficit of 8 per cent of GDP in the year ending March 2009 before declining to 5 per cent in 2013.
- NZPA
