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WELLINGTON, Nov. 20 (Xinhua) -- Falling international dairy prices and low inflation are challenging the New Zealand government's aim of returning to an operating surplus this financial year Cheap Kyrie Shoes Womens , Finance Minister Bill English said Thursday.


"Falls in global commodity prices such as oil, forestry and dairy, together with weak international consumer price inflation, are posing challenges for governments and central banks around the world," English said in a published speech to a business event in Auckland.


The government's annual Budget Policy Statement, to be issued on Dec. 16 along with Treasury's Half-Year Economic and Fiscal Update, would indicate New Zealand was not immune to the global trends.


"This combination of lower commodity prices and low inflation means that the nominal or dollar value of New Zealand's economic output will not grow as fast as previously expected. This will affect farm and company incomes and we expect this to flow into the government's books through lower revenue Cheap Kyrie Shoes For Sale ," said English.


"The unusual current combination of economic circumstances is likely to have an impact on these updated forecasts," he said.


"As we've said all along, returning to surplus this year will be a challenge. But we believe the strength of the economy and constrained government spending can deliver a surplus when the final accounts are published late next year."


The upside was that low global inflation, a strong New Zealand dollar and more jobs meant New Zealanders were avoiding the cost of living increases that would usually go with real economic growth.


"This means New Zealanders have more spending power as, on average, their incomes are rising a bit faster than the cost of living. Low inflation also means there is less pressure on the Reserve Bank to raise interest rates."


The government would remain focused on controlling spending and returning to surplus this year, as well as reducing net debt to below 20 percent of GDP by 2020 Cheap New Kyrie Shoes , in order to withstand the next downturn or natural disaster.


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