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- By Christopher Luxon, Prime Minister
The war in the Middle East is impacting New Zealand.
We entered this challenging time in a stronger position than we would have been if this had happened two years ago, but the impacts are still tough for people.
Many New Zealanders are understandably concerned about rising petrol prices and the pressure that puts on their household budget.
Due to ongoing global supply-chain disruptions, fuel and other prices are likely to remain higher, and will possibly keep increasing, for a longer period.
This Government is very conscious that getting economic management wrong during this crisis will have long-lasting consequences that are difficult to unwind.
We saw this in the aftermath of Covid-19 where short-term decisions led to debt reaching $120 billion and inflation hitting a 32-year high which saw mortgage rates and other prices skyrocket. Kiwis are still grappling with the effects of that today.
National wants to ensure those mistakes are avoided. Responsible economic management matters most when the world is volatile and unpredictable.
By fixing the basics in the economy, we’ve been repairing the post-Covid damage done by Labour.
One of the ways we’ve done that is by reining in wasteful spending, saving taxpayers $43b to date in unnecessary expenses.
This has lowered interest rates, meaning Kiwis’ average mortgage repayments are down by as much as $10,000 per year.
We’ve lowered taxes, and our economy has been growing again, which means exporters and businesses doing well and more job opportunities for people.
The latest data shows 1.1 per cent growth over the last six months of 2025, and growth is still expected to continue, even with the conflict.
Sticking to National’s careful economic plan is how we can best insulate New Zealand and New Zealanders against this global shock and protect New Zealand’s future.
