Nicola Willis, the new Minister for Economic Growth, has a tough job ahead. While the recovering economy gives her some momentum, experts say long-term growth will require more than just short-term wins.
Thank you for reading this post, don't forget to subscribe!Economist Brad Olsen says much of the current growth is driven by consumer spending, boosted by tax cuts and lower interest rates. But the real key? Business investment. “We need more spending on tools, tech, and productivity,” he said. Treasury predicts a 9.4% boost in business investment by 2026, but there’s still work to do.
Willis will focus on cutting red tape, encouraging trade, and creating a better environment for businesses to thrive. Kiwibank’s Jarrod Kerr believes households will feel less stretched this year as inflation cools and wages rise.
The long-term challenges? An ageing population, climate change, and our neglected infrastructure. “We’ve been underinvesting for decades,” Kerr noted. Fixing these issues is crucial to sustaining growth and avoiding future crises.
The bottom line: It’s a balancing act between immediate recovery and building a strong foundation for New Zealand’s future. All eyes are on Willis to make it happen.
