When National came to government we promised to reduce the cost of living so you and your families could get ahead.
In our first year, we took a number of steps to make that happen. We refocused the Reserve Bank solely on inflation, because bringing inflation down means prices increase more slowly and wages grow – that is good for your back pocket.
We also reined in wasteful public spending, interest rates finally starting to come down., and when inflation returned to its target band of 1-3%, that reduced pressure on families and business budgets. Wages grew faster than inflation, and our tax and FamilyBoost packages started providing much-needed relief to Kiwis.
StatsNZ data released last week reaffirmed the Government’s plan. Household living cost inflation is down to 3%, compared to 8.2% in December 2022.
Having said that, we know Kiwis are still doing it tough, but the pressure is starting to ease and green shoots are beginning to emerge – a sign that the Government’s efforts are working.
While the downward trend in inflation is a step in the right direction, it is only half the battle.
Economic growth is my sole focus this year. Everything is about growth, because it is the key to improving living standards, better schools and hospitals and more money in your pocket.
Last week, fast-track applications officially opened, which means we will get the projects we need up and running without years of unnecessary red tape. Projects that will build infrastructure such as houses, roads, hospitals and renewable energy.
We are encouraging foreign investment. This is sending a clear message that New Zealand is open for business, and a new digital nomad visa is up and running to attract more visitors to our shores – both of these are designed to help grow the economy.
We want to make it easier to attract foreign investment, build more housing, and get things done.
It will come as no surprise that economic growth is the central focus of our first quarterly action plan for 2025.
This plan contains 22 actions that will remove barriers to growth and provide more economic opportunities to Kiwis.
We have hit the ground running, with some of the priorities in our Q1 plan already completed.
Following our plan to attract more digital nomads to New Zealand, we’ve also announced changes to the Active Investor Plus (AIP) visa to encourage migrants to invest here. There are two key changes to the visa. One will focus on higher-risk investments, including direct investments in New Zealand businesses, with a $5 million minimum for at least three years. The second will focus on mixed investments, with a $10 million minimum over five years.
Incentivising, simplifying, and broadening the investment offerings will make New Zealand more attractive and accessible to high value foreign investors.
We are also hosting an international investment summit in March with around 100 top investors, business leaders, and construction companies.
This summit will showcase opportunities in New Zealand to overseas investment funds and individuals so they can help fund the growth this country needs.
As well as showcasing upcoming infrastructure opportunities for partnership and investment, the summit will highlight changes to policy, regulation, and legislation that make it easier to do business here.
We want people leaving that Summit to know New Zealand is a country worth investing in.
And we are doing this with one aim – to make the lives of all New Zealanders better, because strong economic growth means a lower cost of living, higher incomes, and better ahead for you, your children and grandchildren.
-Hon Christopher Luxon, Prime Minister of New Zealand
