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By Rodrigo Santos Andrade
New Zealand’s budget under strain from higher debt and ageing population
visibility comment0 event December 20, 2025 timer 21:33
New Zealand is grappling with rising defence costs, higher debt repayments and an aging population, but the country’s Treasury forecasts Wellington will return to surplus sooner than Canberra.
The country’s 2026 budget is already under intense pressure, and at the same time, New Zealand’s economic outlook has worsened.
New Zealand’s Treasury mid-year update shows a slower economy, lower tax take and higher costs to service debt.
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