New Zealand Prime Minister Christopher Luxon has announced that the island nation will ease regulations to attract foreign investment, aiming to stimulate economic growth and create more jobs under his centre-right government.
New Zealand‘s economy sank into recession in the third quarter as activity dived far more sharply than expected, leaving the door open for further rate cuts by the central bank.
In his annual state of the nation address, Luxon said he would set up Invest New Zealand, part of the government’s international economic development agency, as a one-stop-shop for overseas investment.
“Modelled off the success of Ireland and Singapore, Invest New Zealand will roll out the welcome mat – streamlining the investment process and providing tailored support to foreign investors,” Luxon said.
It will help in increasing capital investment across banking, fintech, transport, energy and manufacturing, he said.
“I want a country with more start-ups, more IPOs, more investment, higher incomes, and whole ecosystems of growth and innovation. I want the best ideas and the best investments from offshore making a difference here at home,” Luxon said.
New Zealand’s central bank has cut the official cash rate by 125 basis points since August as inflation eased but economic activity also contracted.
The central bank said in November that it expected to cut by a further 50 basis points when it meets next month.
In 2024, New Zealand implemented several strategic measures to attract foreign investment and stimulate economic growth.
PM Luxon announced the establishment of “Invest New Zealand,” an agency designed to streamline the investment process and provide tailored support to foreign investors, aiming to bolster capital investment in sectors such as banking, fintech, transport, energy, and manufacturing.
Additionally, the government proposed amendments to the Overseas Investment Act to reverse the presumption that investing in New Zealand is a privilege, thereby encouraging more foreign capital inflows.
These efforts align with New Zealand’s broader objective to double the value of its international education exports to NZ$4.4 billion by 2027.
(With inputs from Reuters)
