PM Luxon Unveils Bold Vision for New Zealand’s Economic Growth

Addressing the broader economic mindset, Mr. Luxon called for a shift in attitudes toward growth and innovation.

Prime Minister Christopher Luxon has outlined a transformative plan to turbocharge New Zealand's economy, emphasizing growth as the key to overcoming economic challenges and improving the lives of all citizens. In his State of the Nation address in Auckland, he declared 2025 the "Year of Growth and Prosperity," promising reforms aimed at creating thriving businesses, higher wages, and abundant opportunities.

Reflecting on the progress made in 2024, Mr. Luxon highlighted achievements such as fast-track infrastructure projects, waste reduction measures, new trade deals, and education reforms like banning cellphones in schools. Other successes included efforts to combat crime, like stopping ram raids, and initiatives such as FamilyBoost and foreign investment facilitation.

Growth-Driven Goals for 2025

Mr. Luxon outlined bold strategies to drive economic growth further in 2025. Central to his vision are reforms in science and innovation, foreign investment, and competition, all designed to boost productivity and improve Kiwi incomes.

“Growth is the solution – we must embrace it," he said. "Wherever you come from and whatever you want to achieve, New Zealand will be an outstanding place to make it happen.”

Key initiatives announced include:

1. Establishing Invest New Zealand

A new government body, Invest New Zealand, will serve as a one-stop-shop for foreign direct investment. Modeled on successful examples from Ireland and Singapore, it will streamline processes, provide tailored support, and encourage investment in critical sectors like banking, fintech, energy, manufacturing, and innovation.

“We’re rolling out the welcome mat for foreign investors,” said Mr. Luxon, emphasizing the importance of attracting capital to boost the economy.

2. Overhauling the Science and Innovation Sector

Major changes will reshape Crown Research Institutes into four Public Research Organisations focused on key areas: bio-economy, earth sciences, health and forensic sciences, and advanced technology. These changes aim to turn research breakthroughs into commercial opportunities that benefit the economy.

“Too often, new innovations are shelved or commercialized as an afterthought," he said. "We want our brilliant ideas to make us wealthier, and our researchers will see a greater share of the proceeds.”

3. Boosting Competition and Productivity

Mr. Luxon emphasized the need to address insufficient competition, as highlighted by the OECD. Sectors like banking, energy, and groceries will see reforms to ensure fairer deals for consumers and more dynamic markets.

“New Zealand has long suffered from a lack of competition, and it’s holding back productivity. I’m up for action to fix it,” he stated.

Supporting Key Sectors

The Prime Minister also highlighted ongoing support for tourism, mining, and agriculture. Farmers, a cornerstone of the economy, will benefit from reduced regulatory burdens and improved market conditions.

“Backing our farmers and primary industries is non-negotiable – they’re the backbone of New Zealand,” he said.

A Cultural Shift Towards Growth

Addressing the broader economic mindset, Mr. Luxon called for a shift in attitudes toward growth and innovation.

“Too often, New Zealand has slipped into a culture of saying no. We must embrace growth and opportunity,” he declared. “I want our kids to know that New Zealand is where the opportunities are – not Australia or the UK.”

Looking Ahead

With an ambitious vision for 2025, the government aims to position New Zealand as a global leader in innovation, sustainability, and prosperity.

“This year will be about unleashing the growth, innovation, and investment we need to thrive,” Mr. Luxon concluded. “Kiwis deserve nothing less than a nation where everyone can succeed and enjoy a brighter future.”

As the nation gears up for this transformative year, the Prime Minister’s bold plans promise to make New Zealand a beacon of opportunity and prosperity for generations to come.