New Zealand will stay relatively centrist despite change of govt

Singapore

A NEW New Zealand coalition was sworn in last week, led by Jacinda Ardern's centre-left Labour party. This administration replaces the centre-right National-led government that ruled since the end of 2008, though National remains the largest party in parliament.

The government inherits an economy that has begun to soften after a strong run over much of the post-financial crisis period. There are signs that some key drivers - including record-high levels of immigration, strong international tourism flows, and surging house prices - are starting to weaken. The annual pace of GDP growth in the second quarter of 2017 was 2.5 per cent, down from more than 3 per cent in 2016.

The government has signalled a range of policy changes, including tighter restrictions on immigration as well as constraints on foreign purchases of real estate. There are several practical constraints, such as consistency with trade agreements, but these policies may contribute to a more marked economic…