Treasury is forecasting the economy will grow by an average of 2.7% over the next four years, and the Government's books will return to a surplus a year earlier than expected, in 2028/29.
The improving economic forecast was revealed in Budget 2026, with Finance Minister Nicola Willis saying these new numbers reflected the Government's "careful management of the public finances".
"Balanced books are now in sight," Willis said on Thursday.
Annual average growth in the year to June 2026 was forecast by Treasury to be 1.2%, accelerating to 2.3% by June 2027, and 3.2% by June 2028.
"That growth will be accompanied by new jobs and higher wages," Willis said.
