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Labour leader Chris Hipkins is calling for a Government-wide resignation in light of yesterday’s GDP data release.

However, he hasn’t echoed the demands for Economic Growth Minister Nicola Willis to step down made by former Labour Finance Minister and Act founder Sir Roger Douglas.

New Zealand’s gross domestic product (GDP) fell by 0.9% in the June quarter, a reduction well above market expectations.

Expectations were for a 0.4% decline in GDP, while Reserve Bank forecasts were for a 0.3% drop.

Willis yesterday indicated she and Prime Minister Christopher Luxon had discussed her retention of the economic growth portfolio, in which Luxon had expressed full confidence in her.

Willis had since clarified the pair hadn’t spoken about that and she was instead referencing Luxon’s continued confidence in her abilities.

Finance Minister Nicola Willis and Prime Minister Christopher Luxon maintain their economic strategy is the right one. Photo / Mark Mitchell

Luxon, speaking this morning, affirmed his support of Willis, declaring her the best finance minister New Zealand would ever have.

Luxon and Willis maintain the United States’ tariff regime disrupted global trade and shook investors’ confidence, leading to an economic downturn felt more keenly by trade-dependent nations such as New Zealand.

The unexpected shrinking of the economy conflicted with the Government’s goal to make 2025 a year of growth.

Douglas, alongside University of Auckland Matthew Abel chair of macroeconomics Robert MacCulloch, yesterday called for Willis to resign as they expressed concerns the level of spending on pensions and health prevented a return to surplus.

Hipkins, absent from Parliament yesterday, today wouldn’t answer whether he felt Willis should resign, instead directing his attacks towards the Government.

“The whole government needs to go. Nicola Willis, Christopher Luxon, Chris Bishop, they are all in this together. I think the whole Government should resign.

“Ultimately, this is the economic strategy that this Government signed up to. Look at the coalition agreements, Winston Peters, David Seymour, Christopher Luxon all signed up to this approach to managing the economy. It’s failing.”

Hipkins and Labour had received sustained criticism for the paucity of election policy they had released as the country inched closer to the 2026 election.

Addressing this, Hipkins argued it would be unhelpful to release Labour’s policies amid such economic turmoil.

“Right now, as things continue to get worse on a day-by-day basis, it isn’t the right time for the Opposition to be releasing policy because who knows how much worse this is going to get before things can start to get better.”

More Kiwis think New Zealand is on the wrong track – new poll

The GDP data comes alongside results from a new poll showing the majority of New Zealanders think the country is on the “wrong track”.

A poll conducted by Talbot Mills between September 1 and 10 found 55% of respondents thought the country was on the “wrong track”.

Talbot Mills is Labour’s pollster but the September poll was done for its corporate clients.

The poll also found 30% of people thought the current Government was better than the previous Labour Government, with 45% of people saying the coalition was worse. About a fifth (21%) thought the two governments were about the same and 4% were unsure.

Labour had the largest share of support, according to respondents, with 35% ,while National had 31%. Both the Greens and New Zealand First were on 10%, Act came in at 7% and Te Pāti Māori was on 4%.

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for ��һ�ǿ����� since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.