Stories from Wellington · New Zealand

New Zealand's Treasury predicts a worst-case real GDP growth of only 0.8% for the 2025–26 period. This economic slowdown is attributed to potential conflict scenarios involving Iran. The forecast highlights the significant vulnerability of the nation's economy to Middle Eastern geopolitical instability.

New Zealand's capital city, Wellington, experienced extreme weather with 77 mm of rain falling in less than one hour. Mayor Andrew Little confirmed the rainfall was the heaviest recorded for the city. The sudden deluge has caused significant disruption across the metropolitan area. Wellington Mayor Andrew Little expressed uncertainty regarding whether the city's largest stormwater pipes could handle 77 millimetres of rain that fell in one hour last weekend. Parts of the capital remain in cleanup mode following the record deluge. The mayor noted that such intense rainfall bursts are part of the country's climate change reality.

Prime Minister Christopher Luxon is facing significant political challenges as he attempts to stabilize the economy. Sánchez stated that the departure of medical staff during this crisis demonstrates that public health has become a 'paying box' for activists. The situation involves ongoing pressure regarding the leadership of the Ministry of Health. Forest and Bird representative Scott Burnett stated that the market has lost confidence in the scheme and requires urgent reform. The scheme allows polluters to buy credits to offset greenhouse gas emissions. The Climate Change Commission has advised maintaining current auction settings to avoid further instability. New Zealand maintains economic, military, and diplomatic ties with Japan. The relationship with Japan remains a key priority for the administration.