Nations Tighten 2025 Budgets Amid Global Uncertainty

Several countries, including New Zealand and South Africa, are implementing tight 2025 budgets in response to global economic uncertainty and domestic fiscal pressures. New Zealand's budget limits new operating spending to its lowest level in a decade, forecasts a reduced deficit, and introduces reforms to savings schemes and welfare, but faces criticism from opposition parties about cuts to pay equity and family supports disproportionately affecting women and vulnerable groups. The government expects economic growth and job creation over the next four years and highlights the Investment Boost tax incentive, while acknowledging ongoing global trade risks and a weakening New Zealand dollar, with markets anticipating potential monetary policy easing. South Africa's budget reduces spending on health, education, and early retirement benefits for public sector workers, and raises the fuel levy, as it addresses a significant fiscal shortfall. Experts in both countries warn that excessive austerity or higher business taxes could hamper investment, recovery, and employment. Both governments are challenged to balance fiscal consolidation with protecting essential services and supporting low-income populations.