AUCKLAND — New Zealand Prime Minister Christopher Luxon expects fewer citizens to leave the country as interest rates drop and the economy begins to recover from a prolonged downturn. Luxon emphasized the need to create an “opportunity economy,” where young people see prospects for advancement without needing to move abroad.
A record 81,000 citizens, 1.5% of New Zealand’s population, left the country in the year through July, primarily seeking higher-paying jobs in Australia. The economy is teetering on the edge of its second recession in two years, but with inflation expected to ease, the Reserve Bank has begun cutting interest rates, raising hopes of a recovery.
“There will always be New Zealanders going out into the world, but we must ensure that people feel they can succeed here,” Luxon said. His government has pledged to improve safety, education, and healthcare to encourage more citizens to stay.
The economy contracted by 0.2% in the second quarter of 2024, and further declines are expected. However, business and consumer confidence have risen, and analysts predict growth will resume in the latter half of 2025.
In addition to economic policies, Luxon has faced political challenges, particularly in relation to Maori issues, with critics accusing his coalition government of undermining Maori rights. Luxon has struggled to balance these concerns with the policies agreed upon by the coalition, which includes the ACT Party and New Zealand First.
Despite these challenges, Luxon’s support as preferred prime minister has risen, with his National Party maintaining a lead over the opposition Labour Party.