Finance Minister Grant Robertson has warned that while New Zealand exports are getting out to the world, supply chain issues will continue to affect the country for the rest of this year and potentially into 2022.
“The ongoing economic impact is uncertain, and most forecasts continue to emphasise the likelihood of continued volatility. Supply chain issues are set to affect the economy for much of the rest of this year, and potentially into next year as well,” Robertson said.
The Minister of Finance also flagged that the Government had spent nearly $1 billion less than expected in its Covid-19 Response and Recovery Fund, meaning the money – nearly $926 million – could be tipped back into the Budget for spending elsewhere.
“As part of Budget preparation, I asked each minister to look again at the areas of the Covid spending for which they were responsible to see if it was still required or still a priority and whether underspends could be reprioritised. This exercise has yielded around $926 million worth of savings,” he said.