National's Economic Reforms Fail to Stem Recession

New Zealand's economy is facing its worst recession since the 1970s, with similarities to the past crisis. The country has experienced sustained stagnation and a decline in housing market prices.

The current economic downturn shares many characteristics with the 1970s crisis, including global energy/geopolitical shocks, high inflation, and real GDP growth averaging around 1.5% to 2.2% annually. Unemployment is also hitting Maori and Pasifika communities and youth hardest, just like in the late 1970s.

The National coalition's response has been to deregulate property and development markets, minimize state public service spending, and decrease support for tourism. However, this plan has not worked in the past and is unlikely to succeed now.