WELLINGTON, (Reuters) – New Zealand will soon return to surplus and take on less debt because the economy is more resilient than originally predicted.

According to the Treasury department, while the current-year deficit is expected to grow to NZ$20.8billion ($14.01billion), the surplus will be realized in 2023/24. That’s about two years before previous forecasts.

Grant Robertson, Finance Minister of New Zealand stated that the economy of New Zealand has done well from the start of 2021. However, this strength was tested by Delta’s arrival at the news conference.

Due to the Delta epidemic’s economic impact, the gross domestic product (GDP), is likely to fall approximately 6% during the September quarter. However, the GDP will begin to recover during the December 2022 and March 2022 quarters. They will increase 3.7% and 3.8% each according to the HIEFU (treasury’s semi-annual economic and fiscal update). In 2023/24, the GDP will be 4.9%.

The net debt in the next two years will reach 37.6%, which is higher than the 34.0% predicted in May. Net debt will peak at 40.1% in 2022/23, before dropping to 30.2% at the end of this forecast period.

New Zealand implemented some of the strictest border and pandemic controls in the world. It has helped reduce the spread of COVID-19.

South Pacific country plans to slowly open its borders beginning January of next year.

($1 = 1.4843 New Zealand Dollars)