Luxon Stuck in Neutral as NZ Economy Grinds to Halt

New Zealand's political economy appears to be stuck in neutral, according to writer Bernard Hickey. Despite being nearly four months into his leadership, National Party leader Christopher Luxon remains under the 'handbrake' of Winston Peters, who holds significant power and influence over the government.

Hickey notes that despite a recent vote of confidence in Luxon's leadership, the Prime Minister still has not been able to shake off the perception that he is beholden to NZ First and ACT. This perception was solidified by Luxon's decision to give away key policies and Cabinet positions to these parties in exchange for their support.

Luxon's recent statement on his leadership, where he claimed to have 'the full support' of his caucus, was met with skepticism by Hickey, who notes that the Prime Minister's words are often at odds with reality. For example, Luxon's claim that the government has made 'tremendous progress' in rebuilding economic growth is contradicted by data showing that Gross National Disposable Income per capita has fallen in the last three years.