The New Zealand government is starting a massive economic repair job to fix the country's "fragile economy", Finance Minister Nicola Willis said on Wednesday.

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The repair will also deliver cost of living relief and restore responsibility to the management of public finances, Xinhua news agency quoted Willis as saying.

The repair plan was in response to the latest half-year economic and fiscal update, which highlights high and sticky inflation, high interest rates and reduced economic output, the Minister said.

The update shows the scale of the financial challenges and fiscal risks New Zealand faces.

The government announced a "mini-Budget" setting out the immediate steps the government is taking to strengthen New Zealand's economy, repair public finances and deliver cost-of-living relief.

The mini-Budget draws a line under six years of economic mismanagement and unveils a new chapter for New Zealand's economy, Willis said.

The Minister also announced tax and benefit changes and a commitment to delivering further income tax relief in Budget 2024.