New Zealand has unveiled plans to significantly boost its defence expenditure, aiming to reach 2% of GDP over the next eight years, according to an official announcement on Monday.
Prime Minister Christopher Luxon said the move is essential to ensuring national security in a more unstable global environment.
“We cannot achieve prosperity without ensuring security,” Luxon stated. “Given the increasing global tensions and overseas conflicts, it’s vital for New Zealand to strengthen its role internationally to support trade and job creation at home.”
Defence Minister Judith Collins detailed the new “Defence Capability Plan”, which includes NZ$12 billion in funding over the next four years. Of this, NZ$9 billion (approximately $5 billion) will be newly allocated.
New Zealand’s current GDP stands at around $252 billion. The last time defence spending reached 2% of GDP was in the early 1990s.
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