What Legacy Has Jacinda Ardern Left Behind For New Zealand’s Economy?

New Zealand Prime Minister Jacinda Ardern announced her term would end by February 7. She does not have “the energy” necessary for reelection for office on October 14. A new leader will be voted in a few days. The announcement had little impact on the NZD.

The NZD/USD pair is trading at 0.64 at the time of writing. The pair was looking to trade back in the range with support at 0.6330/50 and resistance at 0.6410/20, after the retreat from the multi-month high it reached on Wednesday at 0.6529. The bias is still to the upside, as it holds above the 20-day Simple Moving Average that stands at 0.6335, while the country’s main stock index fell 0.28%.

Jacinda Ardern has been struggling at home with the economy and COVID-19 restrictions. Ardern announced on Thursday that she will step down in less than three weeks, saying she had “no more in the tank”.

She was among the first leaders to close borders and pursue a zero-tolerance strategy against Covid-19 that kept New Zealanders safe from the virus, holding death rates far below those of other advanced nations. But not everyone was happy with her approach, which included a nationwide lockdown over a single infection.

While Ardern’s popularity rose internationally, at home she has faced growing political headwinds, struggling to prove that her leadership extended beyond crisis management and kindness.

Her ratings have dropped in recent months on a worsening housing crisis, rising living costs and mortgage rates, and growing concerns about crime. She remains, however, more popular that her rivals.

Despite her promises of transformational leadership, Ardern’s affordable housing programmes have been hindered by blunders. Even on climate change, which Ardern called “my generation’s nuclear-free moment”, progress has been slow.