Global shifts prompt bold NZ response, Willis says
Finance Minister Nicola Willis (pictured above), speaking at the New Zealand Economics Forum, addressed the attendees with a poignant message about the rapidly changing global landscape and its impact on New Zealand.
Addressing global challenges and economic shifts
Willis, who is set to deliver a keynote address at the upcoming Financial Advice New Zealand National Adviser Conference, outlined the myriad of global challenges currently shaping economic policies worldwide, including de-globalisation, AI advancements, climate events, and growing skepticism towards national institutions.
She said that these global shifts are compelling leaders worldwide to take bold actions to secure their national interests amid increasing competition for essential resources like food and energy.
The domestic impact and New Zealand’s response
Highlighting the domestic repercussions of these global trends, Willis pointed out that New Zealanders are increasingly feeling the pinch of rising living costs and stagnant incomes.
“It’s hard not to look back on the past few decades and see complacency,” she said, critiquing past economic policies and underscoring the need for proactive economic management.
New Zealand at a Crossroads
Willis described New Zealand’s current economic situation as a critical moment of inflection, detailing how extended COVID-19 lockdowns and subsequent economic policies have led to significant inflation, interest rate hikes, and a generational spike in living costs.
These factors have exacerbated longstanding issues such as low productivity and housing affordability challenges, Willis said.
Launching “Going for Growth” Strategy
In response to these challenges, Willis announced the release of “Going for Growth,” a government document outlining strategic actions in five key areas to stimulate economic growth and alleviate cost of living pressures.
She detailed more than 80 initiatives aimed at enhancing education, reducing regulatory burdens, boosting trade, innovating in science and technology, and improving infrastructure.
Addressing sector-specific competition and consumer issues
Focusing on specific sectors, Willis criticised the lack of competition in areas like banking and grocery, which she argued harms consumers by keeping prices high and choices limited.
She advocated for greater competition to protect consumer interests and ensure fair pricing, especially in critical sectors that affect everyday New Zealanders.
Government’s role in economic procurement and innovation
Willis also touched on government procurement strategies, emphasising the need for a balanced approach that values both cost and the broader contributions to New Zealand’s economy.
She pledged to review and adjust tax settings to make them more competitive and to address the pressing issues of energy affordability and security to support both households and industries.
Optimistic conclusion and call to action
In her closing remarks, Willis expressed optimism about New Zealand’s potential, urging conference attendees to collaborate on proactive solutions to ensure economic resilience and growth.
