A Budget 2015 investment of over $1 million a year will close a “critical gap” in New Zealand’s financial information, Statistics Minister Craig Foss says.
Budget 2015 includes $5.75 million over the next four years for Statistics New Zealand’s Financial Flows and Balance Sheets project - a joint initiative with Treasury and the Reserve Bank of New Zealand.
“There are lots of financial questions policy makers, businesses and non-government organisations would like answers to,” Foss says.
“Where do New Zealand businesses source their funds? How much debt do businesses and households have? Is it sustainable? Has the pattern of borrowing and lending changed since the global financial crisis?”
By producing annual balance sheets and accounts detailing investment and financing, Foss believes this project will help answer these questions and many more.
“Closing this gap in New Zealand’s financial statistics will provide valuable insights into the structure of the economy, potential risks and the sustainability of capital markets,” he adds.
“It will also improve the statistical information used in forecasts and be incredibly important for all sorts of decision making.”
The project will cover all institutional sectors - producer enterprises, financial intermediaries, government, non-profit, institutions serving households, households, and overseas investors.
Ross says work will begin July 1, with the first set of new information expected to be released in March 2017.