NZ Defence Spending Crucial to Economic Security, Warns Former General

New Zealand's defence spending is crucial to its economic security, according to Major General (Retired) John Howard, a senior fellow at the New Zealand Initiative. In a recent column, Howard argued that defence spending is intertwined with diplomacy, intelligence, and economic security, and that an economy as exposed as New Zealand's has a direct stake in a credible military.

Howard pointed out that 85% of New Zealand's goods exports and 73% of imports travel by sea, with $82.7 billion worth of goods shipped annually, including nearly a quarter bound for China through contested waters.

The government has committed to increasing defence spending to 2% of GDP by 2032/33, but this is still below the target recommended by the US Secretary of Defense, who stated that 3.5% is the new allied norm.

Howard warned that if the ships stopped, the economy would grind to a halt within weeks, and that business owners need to take defence spending seriously as a risk and opportunity for their supply chains and procurement pipelines.