CEOs are looking to Christopher Luxon’s Government for clear leadership and direction as New Zealand reaches an inflection point.
Where is our “North Star”, or our “moon bets” they question, saying a much more ambitious — yet captivating — path is needed to prise the country out of its malaise.
That’s the prevailing sentiment from the 2025 Herald Mood of the Boardroom survey, which comes on top of narrowing political polls, a faltering New Zealand economy and unrelenting international crises.
The survey attracted 150 respondents: 125 were CEOs of major New Zealand companies, the balance chiefs of business organisations and directors.
A further 130 responded to a BusinessNZ sentiment survey, which is included in this report.
“Hopefully New Zealand is turning the corner and has already been through the worst of the economic reset,” said Morrison CEO Paul Newfield. “The biggest risk is that, as a small open economy, we are knocked off course by the general deterioration of global trade rules and multilateralism.”
Others suggest a new playbook is warranted.
“The current global realpolitik is in stark contrast to the principles of the ‘Washington Consensus’,” observes Craig Stobo, chairman of the Local Government Funding Agency.
“Are we clinging on to a hope that diminished multilateral institutions will still serve NZ’s national interests?”
Said Forsyth Barr boss Neil Paviour-Smith, “As we learnt on the New Zealand Initiative trip to the Netherlands we are now in a world of the ‘new ESG’: energy, security and geopolitics.”
In this complex environment, the Prime Minister and Foreign Minister have performed at their best on the world stage, adds Paviour-Smith.
But a private equity boss questions if this is enough: “With the world being unsettled by offshore government actions, it is disappointing to see no compensating Government actions domestically. The market, which we all believe in has changed.
“The rule book has changed on what quality and efficacy looks like. Please make sure we are not applying the old rules and heading down a path that is unlikely to exist given geopolitical changes.”
The Government is credited for putting growth at the centre of its economic agenda.
But debt is climbing and there is debate on how economic growth should be furthered, through fiscal stimulus or major cuts in the OCR.
Many New Zealand firms are closing as de-industrialisation steps up, raising questions over why the Government has not prioritised support measures for existing businesses suffering from structural issues such as adapting to energy costs or the imposition of the Trump tariffs.
The upshot is that industries are uninvestable at the moment, said a private equity player. While local investors will still invest in the productive economy “because it is home”, large structural impediments such as tax uncertainty, energy costs and volatility will put foreign investors off.
A resources boss echoed this, saying the hands-off approach isn’t working. “They need to pick a few winners and invest.”
But an energy boss underlined that political point-scoring by both sides of Parliament will deter international capital from engaging to support economic growth, warning that a new “sovereign risk premium” is emerging.
Getting on to a firm growth track, given the recent GDP result, presents a fiscal challenge.
Stobo said while short-term interest rates and export prices provide tailwinds, “they are butting up against a looming firming energy shortage, and a weak central government fiscal position”.
Economist Cameron Bagrie warns that “the Government has not started turning the books around yet. Spending initiatives are front-loaded and all the savings back-loaded.”
Tower Insurance CEO Paul Johnston said attracting leadership talent in New Zealand was becoming increasingly challenging, especially in areas critical to future growth.
“While we have a pool of capable professionals, there’s a clear need to grow our talent base, particularly in leadership, sustainable innovation, AI and emerging technologies, and strategic, big-picture thinking.
“We need to invest in both developing and attracting talent; creating pathways for local talent to grow, while also making New Zealand an attractive destination for global expertise. Despite recent headwinds, we’re optimistic and things are looking up. We’ve got a lot going for us in New Zealand, including our natural environment, unique cultural identity, our international reputation, and relatively high quality of life.
“While challenges remain, it’s time to start shifting our focus towards leveraging New Zealand’s advantages and the opportunities ahead.”
But others warn of our best and brightest heading offshore if we don’t create economic prosperity and therefore career opportunities.
Said a legal boss: “Paint a credible and uplifting vision for 2030 to try to stem the Brain Drain.
“The IQ is shifting to Australia — Rob Muldoon will be turning in his grave.”
Port of Auckland CEO Roger Gray says imports are now growing across multiple trades. Car and machinery imports are up, container volume is up 11.8% compared to August 2024. “The wheel is starting to turn.
“Just get on with it and stop asking Government to do the heavy lifting business should be doing.”
The Prime Minister undoubtedly shines on the world stage but, closer to home, the country’s business chiefs have delivered Christopher Luxon a message.
In the 2025 Mood of the Boardroom survey they ranked him at a mere 15th place on a list of Ministers — inside and outside Cabinet — putting his performance at 2.98/5.
This is on a scale where 1 equals “not impressive” and 5 equals “most impressive”.
This is a sharp drop from his 6th place ranking in last year’s survey.
But it is all part of what business people say is the “Christopher conundrum”; a prime minister who is praised for the way he leverages his personal brand to the advantage of New Zealand business internationally, but within New Zealand has much work ahead of him to build strong confidence with the business community.
In his 21 months as prime minister, Luxon has led a furious pace. He’s taken multiple business missions into Southeast Asia, Japan, India, China and more. Those CEOs and chairs who have accompanied him applaud his leadership.
“The PM and accompanying ‘Team NZ’ are so unified and powerful on trade delegations offshore,” says Dame Therese Walsh, chair of Air New Zealand and ASB, and business leader of some key missions. “Everyone gets behind the cause and can see the impact the PM has in these markets.
“Harnessing this sense of ‘togetherness’ further back home to spur on economic growth is critical to our success. Business collaboration and more sectoral interactions with policy makers would help with this.”
Walsh’s sentiment is underscored by Downer CEO Murray Robertson. “Having joined the Prime Minister on his visit to Niue to open the airport runway, I was struck by his relentless focus and energy.
“His clear commitment to driving economic improvement is commendable.”