3. Question No. 3—FinanceRACHEL BROOKING (Labour) to the Minister of FinanceQuestion No. 3—Finance3. RACHEL BROOKING (Labour) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): The Government's books are in solid shape in what is a challenging economic environment. For the eight months to the end of January the operating balance excluding gains and losses recorded a deficit of $3.2 billion—above that forecast at the Half Year Economic and Fiscal Update but $5.1 billion lower than for the same period a year ago. Core Crown tax revenue is $1 billion below forecast but this has been partially offset by core Crown expenses being below forecast by $800 million. We are continuing to take a balanced and responsible approach to the Government's finances as we traverse a pathway through cost of living pressures the impact of the flooding and cyclone events and a volatile global environment.Rachel Brooking: What did the report say about the Government's debt position and its impact on the economy?Hon GRANT ROBERTSON: The net debt stood at 18.9 percent of GDP which was below the forecast of 20 percent of GDP mainly due to favourable market conditions affecting the financial portfolio of entities such as the New Zealand Superannuation Fund. Our debt levels as a country are among the lowest in the OECD and well below the Government's debt ceiling of 30 percent ensuring that we are well positioned to handle the impacts of the likes of Cyclone Gabrielle and other future economic shocks.Rachel Brooking: What reports has he seen on sentiment about the economy?Hon GRANT ROBERTSON: The New Zealand Institute of Economic Research's Quarterly Survey of Business Opinion was released yesterday and it showed that business confidence in firms' own trading activity had improved somewhat. Nevertheless sentiment does remain subdued amid challenging conditions for businesses. Rachel Brooking: What other reports has he seen on the economy?Hon GRANT ROBERTSON: We have seen a number of reports from the trading banks via research offices in the last couple of days. All of them have pointed to the fact that inflationary pressures are to quote the BNZ Clearly moving in the 'right' direction." This has been emphasised by others who also say that they can see inflation moving to a lower on a sustained basis and the Monetary Policy Committee of the Reserve Bank have also said today that they expect to see a continued moderation in core inflation and inflation expectations.Rachel Brooking: Which regions are buying our exports and supporting the growth in the economy?Hon GRANT ROBERTSON: Sales to Asia rose 30 percent for the February year led by gains in China Japan and Singapore while exports to the US increased 26 percent to Australia by 17 percent and Europe up by 13.5 percent. Demand among our major export partners has remained resilient despite the challenging global environment. Global shipping costs have also generally eased with the container cost rate coming down. Overall New Zealand finds itself in a good position to face the challenges ahead with an economy 6.7 percent bigger than before COVID near record low unemployment growing exports and a resilient set of Government books."