New Zealand PM Luxon calls Nov 7 polls, promises economic prosperity

WELLINGTON - New Zealand Prime Minister Christopher Luxon called a general election for Nov 7 and kicked off his re-election campaign on Jan 21 asking voters to choose continuity and promising economic prosperity.

The conservative government, a coalition between the major centre-right National Party and minority parties New Zealand First and ACT, has been in power since the 2023 election.

“Kiwis will have to weigh up who is best placed to provide stable and strong government in a very volatile and uncertain world... a strong economy with responsible spending, lower taxes and more opportunity for you and your family,” Mr Luxon told a news conference announcing the election date.

Mr Luxon, 55, has seen his popularity fall over the past year amid a weakening economy and higher unemployment.

The former chief executive of Air New Zealand has faced criticism for some of his policies, including the closure of a separate health authority for indigenous people and a lack of funding increases for front-line employees, amid higher unemployment.

Current opinion polls indicate a tight contest with neither the ruling coalition nor the centre-left Labour Party, led by former prime minister Chris Hipkins, appearing to command majority support.

“The economy is recovering, and National’s plan to fix the basics and build the future is delivering results for you and your family. Now is not the time to put all of that at risk,” Mr Luxon said, adding that he was open to working with New Zealand First and ACT after the election, but wanted a strong vote for the National Party.

New Zealand has used a mixed-member proportional electoral system since 1996, and this has made coalitions the norm.

The New Zealand government in 2025 passed a law that will prevent people from enrolling to vote on election day and bar prisoners from casting their ballot while in jail, a move critics say could reduce voter participation and impact support for left-wing parties.

Economic concerns

Mr Luxon swiftly rose through the ranks of the National Party and became leader by end 2021.

He helped the party grab a significant share of votes away from Mr Hipkins’ Labour Party in the 2023 polls.

Labour has struggled to win back support after rising living costs alienated voters, and the

shock departure of former charismatic leader Jacinda Ardern

months before the 2023 election did little to reverse its fortunes.

Mr Hipkins said: “New Zealanders face a very clear choice at this year’s election between a government that’s offering more cuts, more division and more negativity, or a change of government to a government with a positive vision for New Zealand’s future.”

For many voters, the economy remains their key concern, with

growth over the past two years soft

, house prices remaining well below their 2021 peak, and unemployment sitting above 5 per cent.

The government will be banking on the economy continuing to improve in 2026, following on from a 1.1 per cent rise in the third quarter, to reassure voters.

The New Zealand dollar rose 2.9 per cent in 2025, largely due to weakness in the US dollar.

Still, it underperformed its peers and on a trade-weighted basis, it fell more than 2 per cent in 2025.

Mr Ben Thomas, a political analyst and former National Party staff member, said: “The spectre of the economy still hangs over New Zealand politics.”

He added that even though broadly, inflation had come down, there was still a rise in costs such as local government taxes that were hitting people.

Mr Thomas said the government would have been expecting “a slightly easier run into the election with the economy on the turn” but that geopolitics and US politics will likely have consequences for New Zealand as an isolated trading economy. REUTERS