US midterm results could boost NZ economy, Auckland Business Chamber says

Simon Bridges, chief executive of the Auckland Business Chamber, has said the results of the United States midterm elections could boost the New Zealand economy, RNZ reported.

The Democrats took control of both chambers of the US Congress, the national legislature in Washington, in the midterm elections. Bridges said the result could bring an end to the war in Iran and lower the price of oil, which he described as a major driver of inflation, or the general rise in prices.

Bridges said New Zealand's economy had pockets of growth, but international conditions had held it back, and it had struggled to recover since Covid. He said a recovery had been expected in 2025, but sentiment was hurt, and the war in Iran had affected the economy this year.

He also argued for lower corporate tax rates so New Zealand could compete internationally. Bridges suggested that cutting the company tax rate from 28 percent to 22 percent would encourage small and medium-sized businesses to invest and take risks. He said lower rates had drawn bigger businesses to Ireland, where they employed more people and offered higher wages.

On energy, Bridges called for reform, including long-term planning and breaking up the gentailers, the companies that both generate and sell electricity. He said those companies had no incentive to produce more supply.

Bridges also said that keeping mandatory KiwiSaver contributions, the retirement savings deductions taken from pay, below 12 percent would free up capital for small businesses.

Looking ahead, he said 2026 would bring a slow New Zealand recovery rather than rapid growth.

The Auckland Business Chamber is promoting its United States Business Summit 2026, which is focused on the opportunities and challenges in the new US economy, including trade. The summit is described as exploring how New Zealand can navigate the new American economic environment.