GDP contraction and Nicola Willis pressure

The story so far

New Zealand's GDP fell 0.9% in the June quarter, and former Finance Minister Roger Douglas and economist Robert MacCulloch called for Finance Minister Nicola Willis to resign.^{18, 19 Sep 2025} Willis rejected the calls, blaming US tariffs for the contraction and saying the budget will return to surplus in 2028/29.^{18, 19 Sep 2025} Prime Minister Christopher Luxon said he had full confidence in Willis.^{19 Sep 2025} Labour leader Chris Hipkins called for the whole government to resign, though he did not specifically demand Willis step down.^{19 Sep 2025} The GDP figures showed a sharper contraction than anticipated, and construction activity has fallen 18% since June 2023.^{23 Sep 2025}

Latest

The coalition government is under continued pressure after the GDP figures came in weaker than expected.^{23 Sep 2025} Data showing construction down 18% since June 2023 has added to the scrutiny of the economy.^{23 Sep 2025}

Key moments

1. 18 Sep 2025Douglas and MacCulloch call for Willis to resign over GDP contraction
2. 19 Sep 2025GDP falls 0.9% in June quarter; Willis rejects resignation calls
3. 19 Sep 2025Luxon expresses full confidence in Finance Minister Nicola Willis
4. 19 Sep 2025Hipkins calls for entire government to resign, not Willis specifically
5. 23 Sep 2025GDP contraction sharper than anticipated, increasing pressure on government

Written from the stories below; each sentence links to its sources.