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.