1. Question No. 1—FinanceTAMATI COFFEY (Labour—Waiariki) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Finance1. TAMATI COFFEY (Labour—Waiariki) to the Minister of Finance: He aha ngā rīpoata hou kua kitea e ia mō te ōhanga o Aotearoa?[What recent reports has he seen on the New Zealand economy?]Hon GRANT ROBERTSON (Minister of Finance): We know that COVID-19 will have a significant impact on New Zealand's economy particularly in the short term. There are however a range of reports that demonstrate the solid momentum behind the economy going into this situation. Yesterday Statistics New Zealand released overseas trade data for the December 2019 quarter showing New Zealand's terms of trade reached an all-time high at the end of last year—up 2.6 percent on the back of higher meat and wood prices. Last week Statistics New Zealand also released overseas merchandise trade data for January showing exports had continued to rise at the start of the year—up 8.8 percent on January 2019. And on Friday Treasury released the latest Crown accounts for the seven months to the end of January showing a surplus of $1.4 billion and net debt below forecast at 19.5 percent of GDP. While the coronavirus will continue to have an impact on the New Zealand economy these reports show that we are in a strong position to respond to the impacts.Tamati Coffey: What reports has he seen on the impact of the coronavirus on the economy?Hon GRANT ROBERTSON: This is a rapidly changing situation and the economic context is constantly evolving but we are starting to see the first data come through. Yesterday Statistics New Zealand released projections of the likely merchandise trade between 27 January and 23 February. The data shows that New Zealand's total merchandise trade was down 1.9 percent over the period compared with the year before with exports to China down 9 percent. It is important to note that exports to the rest of the world held up around the same levels as last year. The Government continues to work closely with the business community on the impacts of coronavirus; this includes the support we've already given to the tourism sector and the boost to regional business advice services along with the ongoing work on the ground of Government agencies including the Ministry of Social Development the Inland Revenue Department and the Ministry of Business Innovation and Employment. It is important to note that the New Zealand economy is robust and we will get through this situation. I encourage all players in the economy to work together. In particular I urge banks and their clients to develop a plan to see them through this period.Tamati Coffey: What reports has he seen on the international context for the New Zealand economy? Hon GRANT ROBERTSON: Just this morning the OECD released its latest interim economic outlook highlighting that global growth prospects remain highly uncertain as a result of the COVID-19 outbreak. The OECD has downgraded its forecast for global growth this year by half a percentage point to 2.4 percent. In its downside scenario in which the outbreak lasts longer and is more intensive the OECD suggests global growth could fall as low as 1.5 percent in 2020. Similar to the OECD the Government has been planning for three scenarios. As I mentioned last week several times we are moving more towards the second scenario now which is based on a longer-lasting shock with global impact feeding through to the economy for the rest of 2020. Planning for this scenario and indeed further scenarios continues so that we can act swiftly and decisively as the impacts of the coronavirus are felt on the global and domestic economy. These responses will include sector- and regional-specific ones.