The Economy Has Crashed Completely Off the Track – Matthew Hooton
Original Article by: Matthew Hooton First Published by: The New Zealand Herald (January 4, 2026)
By Lions Roar News Business & Politics Desk
AUCKLAND, NZ (January 4, 2026) — In a searing critique of the current government’s fiscal performance, veteran political strategist and NZ Herald columnist Matthew Hooton has declared that New Zealand’s economy has “crashed completely off the track.”
Writing in his first column of 2026, Hooton—who brings over 30 years of experience in corporate strategy and former ties to both the National and Act parties—argues that the responsibility for the nation’s dire GDP performance lies squarely at the feet of Prime Minister Christopher Luxon.
📉 No Room for Excuses: The Domestic GDP Crash
Hooton’s analysis dismisses the common refrains often used by the beehive to explain economic downturns. He asserts that the current “GDP crash” cannot be blamed on external global shocks that have dominated the headlines over the past two years.
- Beyond Global Events: According to Hooton, Luxon cannot point to the tail-end of Covid-19 disruptions, the ongoing wars in Ukraine and the Middle East, or even the aggressive tariff policies of U.S. President Donald Trump as the primary culprits.
- Internal Failures: The columnist suggests that the economic trajectory is a result of domestic policy choices rather than uncontrollable international forces.
- The Strategic Pivot: Hooton, traditionally a voice aligned with center-right strategy, highlights a growing disconnect between the government’s promised economic “turnaround” and the reality of the 2025 data.
🏛️ A Voice from the Inner Circle
What makes this critique particularly potent is Hooton’s background. With decades spent advising and strategizing for the National and Act parties, his assessment reflects a deepening concern within the business and political right regarding the current administration’s ability to manage the economy.
The article, noted as one of the Herald’s most-read views over the past year, serves as a grim retrospective of 2025 and a warning for the year ahead. Hooton’s perspective suggests that without a radical shift in strategy, the “track” back to prosperity remains invisible.
