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Prime Minister Christopher Luxon has today outlined the need to secure New Zealand’s future in an increasingly volatile world, focusing on economic resilience, energy security, defence, international relationships and disciplined economic management.
“We can’t control the storm, but we can secure New Zealand’s future within it,” he says.
Speaking to BusinessNZ ahead of Budget 2026, Luxon said New Zealand had for decades relied on a world order that had become unstable and unpredictable.
“For too long we’ve assumed our location protects us, that an ocean and a quiet reputation are enough.
“They aren’t. Geography gives us time, but it doesn’t give us immunity.
“This is the world New Zealand must now navigate, not with fear, but with clear eyes and a willingness to make the tough choices that will allow our country to achieve its massive potential.”
In his speech Luxon set out the government’s focus on strengthening energy security, securing trade relationships across the Indo-Pacific, lifting defence capability and maintaining social cohesion in a more uncertain world.
“We can’t have prosperity – more jobs, more opportunity, and higher wages for hard working Kiwis – without security.”
He also said global turmoil reinforced the importance of responsible economic management and fiscal discipline ahead of Budget 2026.
“We are getting the books in order while continuing to invest in the essentials – health, education, defence, law and order, and infrastructure.
“That requires ongoing reprioritisation, because the alternative is more borrowing or higher taxes – and ultimately a weaker economy.”
Luxon confirmed the government remains committed to returning the books to surplus by 2028/29 and putting debt on a downward trajectory towards 40 per cent of GDP.
He also confirmed net operating spending on new initiatives in the Budget will total $2.1 billion – about $300 million less than the $2.4 billion allowance set in December.
“Small countries can only live on credit for so long,” he says.
“Between 2017 and 2023 government debt blew out by $120 billion, but eventually the bill must be paid to ensure we aren’t heaping higher taxes or larger debt on future generations.
“Being able to withstand international shocks depends on the size of the buffers you have.
“Budget 2026 will help rebuild those buffers to restore New Zealand’s financial security.”
