WELLINGTON, (APP/AFP): New Zealand said Thursday its budget
was in the black and predicted ongoing surpluses, but warned a British exit from the European Union could pose economic risks if it hit key exports like lamb and dairy.
The former British colony was badly affected in the early 1970s when
London joined the European market, slashing its access for crucial agricultural exports like dairy — the country’s biggest export earner — in a single stroke.
Treasury papers released in Thursday’s New Zealand budget said the
so-called Brexit was a factor that could derail the strong economic performance Wellington expects over the next few years.
“The possibility of Britain exiting the European Union may lead to
high volatility in global markets,” the papers said, adding this “would weigh on demand and inflation in New Zealand”.
Finance Minister Bill English sidestepped the political debate about
Britain’s future in Europe, which will be decided by a referendum on June 23, but admitted he was wary about the economic impact of a vote to leave.
“We’d take the view that anything that creates significant
uncertainly in the world’s third largest economy probably isn’t that good for us,” English told reporters.
“But of course it’s up to the British people to decide through their
referendum.”