Moody's: NZ Credit Profile Reflects Strong Policy & Robust Fiscal

New Zealand's (Aaa stable) resilient economy, strong policy frameworks and robust fiscal buffers have supported its credit profile amid the unprecedented economic shock due to the pandemic, according to Moody's Investors Service in a new report. Institutional effectiveness also mitigates vulnerabilities related to reliance on external financing and elevated household debt. "We expect New Zealand's economy to remain resilient in the face of external headwinds because of its trade openness, diverse and competitive agricultural export base, flexible labour and product markets, high wealth levels and supportive demographics, driven by solid net immigration," says Michael S. Higgins, a Moody's Analyst. "These attributes underscore New Zealand's medium-term growth potential of around 2.5%-3.0%, a level higher than that of many advanced economy Aaa-rated peers."

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