Prime Minister Christopher Luxon emphasised economic growth and recovery for New Zealand in his 2025 State of the Nation address in Auckland today.
He announced the establishment of Invest New Zealand, an upcoming foreign investment agency aimed at boosting productivity and innovation.
Luxon stated, "Invest New Zealand will be established as the government's one-stop-shop for foreign direct investment... streamlining the investment process and providing tailored support to foreign investors".
He highlighted the need for a more permissive approach to economic development. He cited examples like the Port of Tauranga's expansion plans and the restrictions on events at Eden Park.
Luxon also addressed the need for increased competition in key industries such as banking, supermarkets, construction, and energy.
He pointed out that the Resource Management Act reforms would be crucial to the government's push for growth, along with fixing "our broken health and safety rules".
He talked up the role of mining in the New Zealand economy, stating, "It's easy in politics to say you want a sovereign wealth fund like Norway, or much higher incomes like Australia - but it's much harder to say you want the oil and mining that pays for it".
The Prime Minister underscored tourism's importance in New Zealand's growth story. He highlighted the relentless network of tourism operators competing for the national brand and their local businesses. He also mentioned the need to make farming easier and focus on commercialising scientific breakthroughs. He noted that scientists often see too little of research proceeds.
Luxon expressed confidence in the government's economic policies, stating, "I am confident we are now on the road to recovery, but recovery isn't enough. We have to go for growth".
He highlighted the government's achievements in delivering tax cuts and reducing interest rates, which have provided savings for those with mortgages. However, he acknowledged that there was still a long way to go in achieving sustained economic growth.
Looking ahead, New Zealand's economy in 2025 will be mixed. While there are positive signs of recovery, such as increased business confidence and lower inflation, challenges remain. The government will need to focus on creating economic capacity through private investment and the strategic use of trade deals.
The labour market remains tight, with upward wage pressures and labour shortages in skilled trades.
Overall, the path forward is expected to be gradual, with a sense of optimism as inflation stabilises and strategic investments continue to bolster the economy.
Related content