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AAP
AAP
Politics
Ben McKay

Luxon going back-to-basics on hunt for NZ second term

Christopher Luxon is facing a tough fight to win a second term. (Mark Coote/AAP PHOTOS)

Prime Minister Chris Luxon is hoping New Zealanders don't blame his government for economic ills, and instead back him to lift growth as he eyes a second term.

Mr Luxon returned to the public eye on Monday ahead of an election year, delivering a State of the Nation address, fresh with a campaign slogan.

His National Party is "fixing the basics and building the future", according to Mr Luxon, who faces a tough fight to win a second term.

A date for the election - due in spring - may be next, with most tipping a November poll that will give his government time to taste an economic turnaround.

NZ PM Chris Luxon
It's only January but campaigning in the New Zealand election has begun. (Shane Wenzlick/AAP PHOTOS)

The central issue in the election will be the economy, with most Kiwis still battling affordability challenges in an economy that has failed to take off post-COVID.

To that end, Mr Luxon offered notes of sympathy in his speech, saying New Zealanders had endured "two years of hard grind by everyone" since taking office.

In a social media video released at the same time, Mr Luxon looked down the barrel of the camera and acknowledged hardships, saying "look, things have been tough. Real tough".

For that, he blames the previous Labour government led by Jacinda Ardern and his 2026 opponent Chris Hipkins.

"Everybody knows we inherited a mess. Everybody knows that we're doing a turnaround job," he said.

"I know many of you will be frustrated that this recovery, now starting to blossom nationwide, has taken so long to get traction.

"It's been hard and it's been tough, but we've had to confront a lot of things and fix a lot of things.

"But we are turning the corner, the recovery is happening, and it's going to be here."

Christopher Luxon, David Seymour and Winston Peters.
Christopher Luxon leads a three-party coalition with David Seymour and Winston Peters. (Mark Coote/AAP PHOTOS)

While the NZ economy contracted by 0.5 per cent in the most recently measured 12 months,  business confidence is at long-range highs, and consumer confidence has been buoyed by a series of interest rate cuts.

Most analysts believe Mr Luxon's path to a second term - which would involve another coalition with the ACT and NZ First parties - runs through an improved economy. 

There was no new policy in his speech, though the former Air New Zealand chief executive also pointed to education reforms, lower crime levels, and his government's fiscal discipline.

Mr Luxon has also found time to get creative over the summer break and follow in the footsteps of one of his political inspirations Barack Obama, by releasing a playlist of his favourite songs.

The 55-year-old may hope that strikes a chord with a growing number of Kiwis flirting with a return to a Labour-led government.

Some recent polls show the left bloc (Labour, the Greens and the Maori Party) able to form government, which would mean Mr Luxon's coalition would be the first one-term government in half a century.

A polling day could come as soon as Wednesday, when Mr Luxon hosts a retreat for his National Party MPs in Christchurch.

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