Porirua residents, like all New Zealanders, are facing a tougher financial future as the country’s economy struggles to meet earlier growth expectations. On average, each person is set to be $12,700 worse off than forecast just two years ago, highlighting the impact of the current economic slowdown.
Economic data from Treasury shows that over the past two years, New Zealand’s GDP has fallen short by a cumulative $16.4 billion—equivalent to $5,300 per person. Forecasts for the next two years predict an additional $28.3 billion loss, further reducing projected wealth by $7,400 per person by 2027.
Finance Minister Nicola Willis, who is also Minister for Economic Growth, said these figures reflect the reality of a slower-than-expected recovery following the pandemic. She noted that earlier forecasts were too optimistic, underestimating the economic challenges ahead.
For Porirua families, these economic shifts have real consequences. Many households that took on mortgages or made financial commitments based on higher income projections are now facing increased financial strain. Businesses, too, are feeling the effects, with investment levels expected to drop by 6.2% between 2025 and 2027—equating to a $9.2 billion reduction in business spending nationwide.
The government is now focusing on policies aimed at restoring economic growth. However, the slowing economy has already taken a toll on public finances, pushing a return to surplus further into the future. Treasury now predicts ongoing budget deficits into the 2030s, marking the longest period of government overspending since modern accounting practices began in 1994.
For Porirua and the wider Wellington region, these economic conditions mean tighter household budgets, rising government debt, and uncertainty for businesses looking to grow. While the government is pushing a pro-growth agenda, the road to financial recovery may be a long one.