New Zealand's Central Government Debt (% of GDP), 1990-2022

New Zealand experienced a significant reduction in central government debt as a percentage of GDP from 1990 to 2008, driven by fiscal reforms and strong economic performance. Debt peaked at 58.66% in 1992 but declined steadily to a low of 16.31% by 2007. This period of fiscal consolidation included budget surpluses and prudent public spending, aided by structural reforms in the 1980s and 1990s.

However, the global financial crisis in 2008 marked a turning point, with debt rising from 19% in 2008 to 34.72% by 2011. Government stimulus measures and earthquake recovery costs contributed to the increase. Debt remained relatively stable until 2019 but surged in 2020 to 43.34% due to COVID-19 pandemic-related expenditures, reaching 52.79% by 2022 as the government managed economic recovery efforts.