Improving market conditions indicating economy back on right track, are steadily picking up economic outlook in New Zealand. Recently released figures by treasury indicate that economic slowdown had not impacted economy as much as earlier projected.

However, Finance Minister Bill English observed that challenges are still there and a lot of needs to be done to completely get rid of recession like situation which gripped the economy. English said that impact of recession would continue for some time as economy is still under pressure.

Forecasts of people losing jobs under the impact of global slowdown have been revised to 60,000 against the earlier forecasts of 124,000 job losses. This decline may be partly due to cost cutting measures employed by companies other than retrenchments and stabilization of World economy.

Treasury claimed that government books need to wait until 2016 to completely return to surplus. Labour's finance spokesman David Cunliffe added, "The Government is talking down the strength of the recovery because they do not want the public's expectations to rise ahead of a budget that will be a very tight budget."