Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
US Military Launches New Strikes on Iran, Targets Threats to Strait of Hormuz Shipping 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Zelenskiy Plans Ukraine Government Shake-Up as Prime Minister Svyrydenko Set to Step Down 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Minnesota Wildfires Spread as Governor Tim Walz Deploys National Guard 
Trump to Deliver National Address on 2020 Election Intelligence, Voting Machine Security 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Venezuela Appoints Felix Plasencia to Lead Foreign Relations and Trade 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
EU to Propose New Rules Limiting Children's Access to Social Media 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Brazil Court Bars Flavio Bolsonaro From Visiting Jair Bolsonaro Ahead of Election 
New Zealand’s government is preparing deep public sector spending cuts as it aims to strengthen its economic reputation before the country’s closely contested November 2026 election. Finance Minister Nicola Willis announced on Tuesday that the government plans to reduce thousands of public service jobs while avoiding pre-election cash handouts in the upcoming national budget.
Speaking at a Business North Harbour event, Willis said the coalition government intends to lower the number of core public service employees to no more than 55,000 full-time workers by July 2029. The move would cut around 8,700 positions compared to figures recorded in December last year.
According to Willis, the goal is to return the size of New Zealand’s public service workforce to roughly 1% of the national population, which she described as a historic benchmark. Essential frontline sectors including healthcare, education, and law enforcement will not be affected. Teachers, nurses, doctors, police officers, and employees of Crown entities are excluded from the planned reductions.
The New Zealand budget, scheduled for release on May 28, will also include operating budget cuts for most government agencies. Departments are expected to reduce spending by 2% next year, followed by additional 5% cuts over the following two years. The government expects these measures to save approximately NZ$2.4 billion during the forecast period.
Willis defended the fiscal tightening by pointing to rising public debt, global economic uncertainty, and annual debt servicing costs estimated at NZ$9 billion. She stressed that the government would avoid “free” spending promises or election giveaways, arguing that New Zealand cannot afford another period of excessive public spending.
The government recently confirmed that operating spending for the 2026-27 fiscal year would be set at NZ$2.1 billion, lower than previous forecasts, while capital spending will increase to a net NZ$5.7 billion.
