New Zealand Sees Wider Budget Deficits, Long Road to Surplus (1)

New Zealand will avoid a double-dip recession but faces larger budget deficits and a longer road back to surplus, according to the nation’s Treasury Department.

Releasing the Pre-election Economic and Fiscal Update Tuesday in Wellington, Treasury said the deficit will widen to NZ$11.4 billion ($6.7 billion) in the year ending June 2024 compared with a NZ$7.6 billion gap forecast in May’s budget. The books don’t show a surplus until 2027, a year later than previously projected.

The weaker budget outlook comes less than five weeks out from the Oct. 14 general election and leaves political parties little room for ...