NZ's unemployment to peak sooner and lower - FinMin

WELLINGTON, Nov 4 - New Zealand's unemployment will not reach the level forecast previously as the economy emerges from recession, Finance Minister Bill English said on Wednesday.

"We are seeing some welcome early signs of New Zealand moving out of recession and we expect this will see unemployment peaking next year lower and sooner than previously forecast," he said.

The Treasury said in September the unemployment rate was likely to peak at around 7.5 percent next year against its previous forecast of 8 percent, while the Reserve Bank of New Zealand saw it peaking at 6.8 percent by March next year.

The latest unemployment data is due on Thursday, with expectations in a Reuters poll for the rate to rise to 6.4 percent in the third quarter from the previous decade-high 6 percent. [NZ/POLL]

English also said the government's financial statements for the three months to Sept. 30 confirmed that it would take time for the economic recovery to be reflected in revenue.

The government's fiscal position came in worse than forecast in September as the prolonged recession dented tax revenue and raised costs. [ID:nWEL003886]

Last month, English said the government would need to borrow large amounts, particularly in the near term, to cope with the impact of the global financial meltdown and economic recession.