25 May 2019

Ardern warns of risk of global headwinds ahead of Budget

10:50 pm on 25 May 2019

Prime Minister Jacinda Ardern has warned about the risks of an unstable and uncertain global climate for New Zealand businesses.

Prime Minister Jacinda Ardern speaks to media in France after the Christchurch Call summit.

Prime Minister Jacinda Ardern Photo: Supplied / Pool

In a pre-Budget speech in Auckland this afternoon, Ms Ardern set the scene for the government's first Wellbeing Budget to be delivered on Thursday.

She warned that while the economy is strong, New Zealand will always be impacted by global headwinds.

There were significant challenges facing the global economy, including the trade war between the United States and China, as well as signs of a slowing US economy, and ongoing uncertainty in Europe thanks to Brexit, Ms Ardern said.

"All of this adds up to a global environment in which New Zealand businesses operate that is both unstable and uncertain."

But Ms Ardern said New Zealand was well-positioned to face this instability and uncertainty, despite slowing rates of growth.

The government has been rolling out a number of announcements in the lead-up to Thursday's Budget.

They have included more funding for initiatives to tackle homelessness and domestic violence.

The announcements have also covered other areas, including health, education and the SuperGold card.

There will be one last pre-Budget announcement on Sunday.