With the Kiwi prime minister shocking the world with the news she’s standing down as leader, we thought it was time for an economic spotlight on New Zealand.
Like many, the country’s economy has been dealing with the fallout of the pandemic and surging inflation.
Political analysts had earlier predicted that the 2023 elections would be a very close election, which would mainly be focused on the economy, inflation and equality.
Just today, it’s official data agency announced annual food prices had spiked at their highest rate since 1990!
Food costs went up by more than 11 per cent in a year. The big drivers, like in Australia, have been grocery prices, eating out and a whopping 23 per cent spike in fruit and vegies.
Aside from the rising cost of living, you have New Zealand’s property market woes. It had a huge spike like we did here in Australia and now it’s experiencing a fallout.
The latest property data, out just yesterday, showed it’s property prices were down 12.1% to in the year to December, according to REINZ.
New Zealand’s central bank has been lifting its official cash rate higher and sooner than here in Australia. It’s currently at 4.25 per cent and some project it’ll hit 5.5 per cent this year.
All of this is causing a lot of pain for some households in New Zealand, especially in an economy with a traditionally higher cost of living than Australia anyways.
Jacinda Arden says she doesn’t have enough fuel in the tank for another year as Prime Minister. If she did, she would’ve needed quite a lot of it, as New Zealand is set for a tough year.
Read more about her exit here (and why it is not a shock to some watching closely) in this piece by ABC News reporter Emily Clark.