Former Finance Minister Urges Resignation of Nicola Willis After GDP Drop

Former Finance Minister Roger Douglas has called for the resignation of current Finance Minister Nicola Willis following a reported decline in New Zealand’s gross domestic product (GDP). The contraction, revealed by Stats NZ on March 14, 2024, has raised concerns among economists and political figures regarding the country’s fiscal health.

Douglas, alongside Robert MacCulloch, who is the Matthew S. Abel Chair of Macroeconomics at the University of Auckland, stated that the latest GDP figures reflect serious underlying issues. They argue that Willis is leading New Zealand towards financial instability due to her inability to manage increasing fiscal deficits and public debt.

In a joint statement, they criticized Willis’s assertion that the country is on track for a budget surplus, claiming it contradicts the long-term fiscal forecasts provided by the Treasury. “Her own Treasury contradicts her claim that New Zealand is on a path to surplus. It is not,” they emphasized. According to their analysis, the aging population’s demands for pensions and healthcare are contributing to what they describe as “out-of-control deficits.”

Douglas and MacCulloch did not shy away from stating their belief that Willis lacks the capability to fulfill her role effectively. They expressed their view that she is not being transparent with the New Zealand public about the fiscal challenges the nation faces.

Despite the mounting pressure from Douglas and MacCulloch, Willis has rejected calls for her resignation. In her response, she maintained that the government is committed to addressing the issues highlighted in the Treasury’s reports while working towards fiscal recovery and economic stability.

The economic landscape in New Zealand continues to evolve, and the implications of the latest GDP figures will likely influence political discourse in the coming weeks. The government’s approach to managing the country’s finances will remain under scrutiny as both public and private sectors react to the latest developments.

As the nation grapples with these significant economic concerns, the dialogue around fiscal responsibility and transparency will undoubtedly intensify.