New Zealand plans to double its defence spending close to 2% of GDP over the next eight years. Prime Minister Christopher Luxon emphasized the link between national security and economic prosperity, citing an increasingly unstable global environment.
The Defence Capability Plan outlines a NZ$9 billion (A$8.3 billion) investment over four years to address longstanding underfunding in the New Zealand Defence Force (NZDF), which currently spends just over 1% of GDP.
Proposed investments include enhancing strike capabilities, upgrading aerial systems, replacing helicopters and the Boeing 757 fleet, and extending the life of existing frigates.
This move follows a 2023 national security review urging increased military spending and stronger Indo-Pacific ties to counter strategic challenges from China and Russia, and to address climate change.
The NZDF has faced high attrition in recent years, leading to reduced operational capacity, though this trend has recently improved.
Defence Minister Judith Collins stated, “Our servicemen and women do New Zealand proud throughout the world and this funding will help ensure we retain their services and expertise as we navigate an increasingly unstable environment.”
