New Zealand’s upcoming general election on November 7th is shaping up to be a closely contested affair, with the economy and the cost of living set to be central themes. Prime Minister Christopher Luxon’s centre-right National Party government will be seeking a second term, while the main opposition Labour Party, led by Chris Hipkins, hopes to regain power after a disappointing showing in the previous 2023 election.
Luxon, a former business executive who became National Party leader in 2021, has pledged to rebuild the economy in the wake of the COVID-19 pandemic. However, the country’s economic fortunes have remained sluggish, with GDP contracting a further 0.5 percentage points in the most recent 12-month period. Migration to neighbouring Australia has also hit record highs during Luxon’s tenure, underscoring the challenges facing New Zealand’s recovery.
Luxon has sought to blame the previous Labour-led government for the country’s woes, describing the situation he inherited as a “mess.” But Hipkins, who briefly served as prime minister in 2023 following Jacinda Ardern’s sudden resignation, has dismissed Luxon’s remarks as “management-speak mumbo-jumbo,” arguing that the National Party leader has failed to deliver on his promises, particularly when it comes to making housing more affordable.
The cost of living and access to public healthcare are also expected to be key battlegrounds, with the parties offering contrasting visions on how to address these issues. Luxon has criticised Labour’s approach as overly reliant on accruing national debt, while Hipkins has accused the National Party of squandering money on unaffordable tax cuts.
Adding to the intrigue is the fact that the premiership will once again be contested by two men named Christopher – Luxon and Hipkins. Luxon, a 55-year-old political newcomer, has sought to leverage his business experience, but his critics have highlighted his lack of political experience and suggested that his wealth has made him out of touch with ordinary New Zealanders.
Hipkins, on the other hand, is a more seasoned politician who has held major portfolios in previous Labour governments, including health and education. However, he has faced criticism from both the left and the right, with some on the left decrying him as too timid, while those on the right have sought to remind voters of his role in Ardern’s government and its strict COVID-19 lockdowns.
Given New Zealand’s proportional voting system, the outcome of the election may well hinge on the performance of smaller parties, which often hold the balance of power and can extract significant policy concessions in return for their support. Luxon’s current government was formed with the libertarian ACT party and the populist New Zealand First, while Hipkins would likely seek the backing of the left-leaning Green Party and the Māori Party.
With the economy, the cost of living, and housing all set to be central issues, the race is expected to be tight, and the outcome could have far-reaching implications for New Zealand’s political landscape.
