The rebuilding of earthquake-stricken Christchurch is expected to cost the New Zealand Government $NZ15.4 billion ($14.24 billion) – 3% more than earlier forecast.

About $NZ7.29 billion ($6.74 billion) of that will be incurred by the Earthquake Commission (EQC) after reinsurance.

The entire rebuild cost is estimated at $NZ40 billion ($36.98 billion) according to the budget released last week.

The Canterbury rebuild and near record-high terms of trade are contributing to strong economic growth that will return the country to a budget surplus this year.

Statistics New Zealand estimates $NZ13 billion ($12.02 billion) of an expected $NZ19 billion ($17.56 billion) earthquake reinsurance claims have been settled and the Insurance Council of New Zealand last week said about 60% of private insurer residential claims had been paid.

The budget papers show the EQC’s liabilities, excluding reinsurance payments, are falling as claims are paid out, from $NZ6.87 billion ($6.35 billion) in 2013 to a forecast $NZ4.31 billion ($3.98 billion) this year, sliding to $NZ364 million ($336.5 million) in 2015.

Forecast results for the EQC and Accident Compensation Corporation (ACC) have been upgraded to reflect revaluations and a reduction in their cost of claims.