Gordon Campbell wrote this a month ago before Jacinda resigned and when it looked National could form the next government.Much has changed since but the underlying economic trends noted by Campbell remain. National would not have inherited a mess —quite the contrary.-- ACW
Inevitably, Ardern has had critics on both sides of the political divide. Her reluctance to pursue a meaningful capital gains tax or to enact a wealth tax drew criticism from the left. Much of the criticism she faced from the right was crudely related to her gender and physcial appearance, as much as policy differences.
By and large, New Zealand has weathered the global crisis caused by Covid and the Ukraine war in reasonable shape. During the early stages of the pandemic, our economy was kept afloat via wage subsidies, business subsidies and support schemes for the likes of the tourism industry. Housing construction doomed. Absurdly, business confidence now sits at its lowest level in 52 years. Go figure.
New Zealand's GDP grew by 3.7% during 2021, our levels of government debt are lower than in every other Western democracy, unempoyment is low, and last year, farmers enjoyed the best global prices in more than a decade.
Yes New Zealand's inflation rate is very high (as it is everywhere else) but here and in Australia,
this is widely expected to decline over the coming year and into 2024.
Far from inheriting a mess, the next government will be taking over at a time when the economic cycle looks to be climbing back towards recovery.
In July, Jacinda Ardern will turn 43. Most of the country will be wishing her well on her return to private life.
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