1. Economic Outlook—International Uncertainty and ResilienceDr PARMJEET PARMAR (National) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSEconomic Outlook—International Uncertainty and Resilience1. Dr PARMJEET PARMAR (National) to the Minister of Finance: What factors show the New Zealand economy is well placed to withstand international uncertainty?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of the Minister of Finance: As the Reserve Bank reported today in its Monetary Policy Statement the outlook for growth in New Zealand is positive. This means we are well placed to deal with any uncertainties in the world economy. The bank is forecasting economic growth in excess of 3.5 percent in each of the next 2 years. In addition the financial statements for the first 3 months of this year show that the Government recorded an operating surplus of $222 million which was $725 million better than forecast largely due to higher-than-forecast tax revenues. New Zealand is one of the few developed economies in the world that is growing at more than 3 percent a year running a fiscal surplus enjoying strong job growth and has relatively low levels of public debt.Dr Parmjeet Parmar: What other factors demonstrate that New Zealand is well placed to deal with uncertainty?Hon STEVEN JOYCE: The Government's responsible fiscal management means we are not burdened with excessive levels of debt and we have room to manoeuvre. Government debt presently sits at 25 percent of GDP and is forecast to fall to around 20 percent by 2020. In addition of course we have a floating exchange rate that adjusts quickly to changes in international trading conditions an independent monetary policy an open economy with diversified trade opportunities and a sustainable current account and we are starting to see the benefits of increased investment in public infrastructure and better-quality investment in our people.Dr Parmjeet Parmar: What have been some of the immediate effects of the US election result?Hon STEVEN JOYCE: In economic terms there has been some movement in the value of the New Zealand dollar and on the stock exchange but as of midday today the dollar was trading at levels similar to the beginning of the week. The NZX50 fell in yesterday's afternoon trading by 3.5 percent but recovered 2.3 percent of that this morning. In the US the Dow Jones industrial average closed up 1.4 percent. The Reserve Bank reports that the probability of a US federal rate hike in December has decreased. As I said New Zealand's monetary policy flexibility a floating exchange rate and strong fiscal position mean New Zealand is well placed to manage through any uncertainty from wherever it may come.Dr David Clark: Is it correct that despite his target for exports as a percentage of GDP being 40 percent they are now 30 percent and lower than when his Government took office?Hon STEVEN JOYCE: That target of course is set for 2025 so perhaps the member might prefer to return with his question in 2025 and then he will get an answer.Dr Parmjeet Parmar: What are the next steps for the Government following the US election result?Hon STEVEN JOYCE: The Government will continue to focus on what it can achieve to build a stronger and more resilient economy. That means continuing to invest in better public services that work for New Zealanders maintaining and building on our fiscal surpluses staying on track to pay down debt and working to further improve New Zealand's already strong and in fact world-leading business environment. As a trading nation New Zealand will continue to press its case for expanding trade connections including with the United States to open up more markets for our exporters and diversify our international connections to make New Zealand further strong. Mr SPEAKER: Question No. 2—[Interruption] Order! [Interruption] Order! If the members want to have a discussion go into the lobbies and do so.