Government Unveils Ambitious Growth Agenda for 2025

PM Luxon Promises Focused Action to Boost Incomes, Businesses, and Opportunities.

Prime Minister Christopher Luxon has outlined the Government's 2025 growth agenda in his annual Statement to Parliament, emphasizing a relentless drive to lift incomes, strengthen local businesses, and create opportunities for all New Zealanders.

“Just over a year ago, this Government was elected by the people of New Zealand with a mandate to change course,” Mr. Luxon said. “Since then, we have made significant changes, and we are seeing promising signs of success, with inflation dropping and remaining low, interest rates starting to fall, and wages continuing to rise.”

The Prime Minister highlighted several key economic indicators pointing to recovery. Business and consumer confidence are on the rise, and for the first time in over three years, average mortgage interest rates have fallen. Additionally, wages are now growing faster than inflation, providing much-needed support for household incomes. Treasury's latest forecasts project economic growth to reach 2.1% in 2025, signaling renewed momentum.

A Plan to Strengthen Growth and Productivity

Mr. Luxon underscored the importance of acting now to bolster growth and productivity in both the short and long term. The Government's strategy focuses on dismantling barriers to economic activity and streamlining processes.

“In 2025, we will take action to end the culture of no,” Mr. Luxon declared. “Whether through the Fast Track initiative, comprehensive reform of the Resource Management Act (RMA), rewriting our health and safety laws, enabling more mining, or supporting our farmers by reducing red tape, we are committed to promoting growth and investment.”

These efforts aim to create an environment where businesses can thrive and workers can enjoy higher incomes. Sectors like agriculture, mining, and infrastructure are expected to benefit from reduced regulatory burdens, fostering innovation and expansion.

Foundations for a Stronger Economy

Reflecting on the Government's first year in office, Mr. Luxon highlighted the difficult decisions made to ease the cost of living while laying the groundwork for a stronger economy. These measures included targeted tax relief for families, expanded investment in skills training, and a focus on infrastructure development to boost productivity.

“This year, we will build on this early progress to ensure these green shoots of recovery grow into lasting improvements that benefit all New Zealanders,” he stated.

Future Priorities

As part of the growth agenda, the Government plans to:

1. Accelerate housing construction by addressing land-use constraints.
2. Support small and medium-sized enterprises (SMEs) with access to affordable capital and advisory services.
3. Expand vocational training programs to address skills shortages in key industries.
4. Promote sustainability by enabling businesses to adopt green technologies while maintaining competitiveness.

Mr. Luxon called on all stakeholders—businesses, workers, and communities—to collaborate in realizing this vision for a prosperous New Zealand.

“Together, we can ensure that every New Zealander has the opportunity to get ahead and enjoy the benefits of a growing economy,” he concluded.