Dr Oliver Hartwich: Growth agenda needs fiscal consolidation

Prime Minister Christopher Luxon’s State of the Nation speech yesterday presents a clear shift towards economic growth. While familiar aspirational rhetoric featured prominently, his initiatives deserve support. However, the absence of fiscal discipline raises concerns.

The speech’s centrepiece announcements make sense. A dedicated investment promotion agency could help attract foreign capital, following the model of Ireland’s highly successful Industrial Development Authority (IDA). This reform is crucial. New Zealand currently ranks as the most restrictive OECD country for foreign direct investment.