With the exception of Norway, New Zealand's Crown accounts continue to come in as the strongest in the Western World which is very good news because it acts to protect all New Zealanders in these incredibly stressed-out global economic times.
Treasury reports today that the government's operating balance before gains and losses was a surplus of $49 million in the eight months to the end of February 2009 and the Crown's net financial asset position was positive $7.7 billion - equivalent to +4.3 per cent of NZ's GDP.
In the USA, government net debt stands at over 50 per cent of US GDP, whereas NZ's government has no net debt - at 28 February our government's financial assets were valued at more than its financial liabilities to the tune of the equivalent of +4.3 per cent of NZ GDP.
NZ's current position is not only exceptionally strong compared with the U.S., the UK or the Eurozone countries, but it is the strongest set of Crown books in NZ since records began in 1972 (when net Crown debt was around -5 per cent of GDP and compared with -52.6 per cent of GDP in 1992).
The National Government has inherited the best possible position to respond to the very challenging international economic conditions - their responsibility is to keep the Crown accounts strong and to ensure that every cent of new expenditure adds to the economy's strength while assisting those hurt by unemployment to find new employment - hopefully in export-orientated businesses ready to make the most of the next international upturn.
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