Fiscal chickens coming home to roost

Responding to today’s release of the fourth quarter 2025 GDP figures, Taxpayers’ Union spokesman James Ross said:

“Although quarter one 2026's growth figure is likely to remain positive, beyond that there are massive headwinds building for the New Zealand economy. The conflict in Iran looks to be going nowhere anytime soon, pushing up oil prices, fuelling inflation, lifting interest rates, and ultimately dampening growth.”

“Economies with regular surpluses and strong fiscal buffers are well-placed to weather the storm. With no surplus expected this decade and debt more than double its 2019 share of the economy, New Zealand is not one of them.”

“This Government has ignored Treasury’s warnings and continued the fiscal vandalism of its predecessor. Spending is up in real terms since 2023, while GDP per capita has fallen by 2.41 percent.”

“This fiscal reckoning won’t wait until it’s politically convenient for the Finance Minister. With December’s HYEFU forecasts already woefully out of date, Budget 2026 must slash spending to close the deficit and rebuild economic resilience.”