The tearful farewell, but also the sometimes hateful comments about Jacinda Ardern's self-chosen resignation from the office of New Zealand Prime Minister, slightly distract the view from their economic and political balance sheet.

However, at the latest in her second term after 2017, this turns out to be much worse than she herself had hoped.

After five and a half years at the head of the islands, she leaves a country groaning under high prices and facing recession.

Shortly after Ardern's departure, her confidante, Treasury Secretary Grant Robertson, ruled out being available to succeed him.

Christopher Hein

Business correspondent for South Asia/Pacific based in Singapore.

  • Follow I follow

Just over a month ago, the 42-year-old announced: "In this particularly turbulent economic time, we are concentrating on saving and making sure that the economy is our priority." The rising costs, the consequences of the harsh Corona policy and that The failure of the Labor Party's property policy weigh heavily on its reputation.

In polls, Ardern's party achieved its lowest approval rating since coming to power.

The number of votes would be too few for a coalition after the upcoming elections in autumn.

With only 29 percent approval, Ardern also recently performed worse than ever with the New Zealanders.

Campaign promises not fulfilled

They blame the young prime minister for the overall economic situation on the islands, especially the rate of inflation.

Because the increase in food prices by a good 8 percent and overall inflation of 7.2 percent hit the approximately five million "Kiwis" at a time when housing is already unaffordable for many.

The raising of the key interest rate by the central bank then makes borrowing more difficult.

While these are currently global problems, in New Zealand they stand in particular contrast to the election promises: Ardern had started with the promise to make housing possible for everyone.

When she won her first election, she declared that she would have one hundred thousand homes built for the underprivileged under the KiwiBuild initiative.

Five years later there are only 1366.

Many companies suffered from the tough lockdown

Ardern's way out of the crisis then appeared to many New Zealanders as another step in the wrong direction.

Because in December she explained that she is now pressing the brake pedal: "Internationally we are seeing a slowdown in the economy and many are forecasting a recession in different parts of the world.

So we will focus on cutting spending."

From the point of view of many citizens, this would have meant that a Labor government of all people would let their costs rise exorbitantly on the one hand, and cut services and subsidies on the other.

For the first time in years, New Zealand is no longer growing through immigration;

many highly qualified people are leaving “the land of the white cloud” to take advantage of opportunities, particularly in Australia.

Farmers, hoteliers and tourism operators on the green islands have not forgiven Ardern for the hard lockdown during Corona.

The closure of the islands has kept the death rate very low in comparison.

But there were no guests for many months and businesses collapsed.

The farms still lack the pickers they need for their harvests.

"Saint Jacinda", as she was often called due to her emotional demeanor, also lost her reputation because she brushed off criticism of her Corona policy for a long time.

Ardern was also not as successful in climate policy as its appearance might have led one to expect: from 2018, emissions increased by 2 percent.

However, the now announced restriction of emissions of greenhouse gases in agriculture – New Zealand's most important economic sector – brought the farmers against them again, who fear rising costs.