New Zealand will loosen foreign investment regulations to attract international capital, Prime Minister Christopher Luxon announced on Thursday (New Zealand time).

The move is part of his government’s strategy to stimulate economic growth and create jobs amid a weakened economy. The country slipped into recession in the third quarter of 2024, with economic activity contracting more than expected.

In his State of the Nation address, Luxon outlined plans to establish Invest New Zealand, a new initiative within the government’s international economic development agency, designed as a one-stop shop for foreign investors. Luxon:

• “Inspired by successful models in Ireland and Singapore, Invest New Zealand will streamline investment processes and offer tailored support to overseas investors”

The initiative aims to increase capital inflows across key sectors, including banking, fintech, transport, energy, and manufacturing. Luxon emphasized that his vision is to foster more start-ups, IPOs, and innovation, while ensuring New Zealand benefits from top-tier global investments.