2. Question No. 2—FinanceBARBARA EDMONDS (Labour—Mana) to the Minister of FinanceQuestion No. 2—Finance2. BARBARA EDMONDS (Labour—Mana) to the Minister of Finance: Talofa lava Mr Speaker. What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): In its latest note on New Zealand the OECD is projecting the economy to slow in 2023 due to global uncertainty and lower domestic demand. It is forecasting economic activity to moderate to 1 percent next year and warns that risks to the projection are to the down side. Nevertheless New Zealand finds itself in a good position to face the challenges ahead and support our people to blunt the sharp edges of the global economic slowdown. The OECD noted that unemployment is close to historic lows wages are growing and the reopening of borders has contributed to a surge in tourists. The Government's books are in a strong position with debt levels among the lowest in the world. This will be a tough period for many New Zealand households but our country is in a strong position to manage it.Barbara Edmonds: What did the report say about New Zealand's public finances and its impact on the economy?Hon GRANT ROBERTSON: The OECD said fiscal consolidation was appropriate to help reduce demand pressures and make sure that New Zealand was on track to meet a Budget surplus target. For the 2022 June financial year core Crown expenses were below forecast. Excluding COVID emergency spending expenses were about 31 percent of GDP which is in line with the historic average. The fiscal impulse is forecast to turn contractionary in the current June 2023 financial year and remain so throughout the remainder of the forecast period.Barbara Edmonds: What further reports has he seen on the global economy and its impact on the New Zealand economy?Hon GRANT ROBERTSON: The OECD is forecasting that global economic growth will slow to 2.2 percent in 2023 and said the world was now paying a high price for Russia's unprovoked unjustifiable and illegal war of aggression against Ukraine which is resulting in high levels of inflation and energy supply shortages particularly in Europe. The OECD is projecting that the UK will contract 0.4 percent next year while the US will grow 0.5 percent and Europe by 1.8 percent. The 38-nation OECD will expand by 0.8 percent.Barbara Edmonds: What reports has he seen on the role of the export sector in the economy?Hon GRANT ROBERTSON: The export sector is continuing to support the economy. Statistics New Zealand reported that exports rose 14 percent to $7.1 billion in October compared to the same month a year earlier. On an annual basis exports rose 14.5 percent to $71 billion. The sector is continuing to show its resilience but as I've noted previously in the House what happens overseas will impact on New Zealand's prospects. If our trading partners do move into recession this will affect the demand for New Zealand's goods. As a Government we will continue to support New Zealanders and soften the impact of these global shocks while investing for the long term in health education housing and addressing climate change. We will responsibly manage our finances and make sure that as New Zealanders face difficult times ahead we are there to support them.