New Zealand Election: No clear victory increase political uncertainties

No clear victor has emerged in Saturday’s federal election in New Zealand which pushes the country to uncertain political territories. New Zealand National Party, which has governed the country since 2008, received 46 percent of the votes, well ahead of rivals, however, its traditional partners in the minority government failed to gather the support required.

The National Party won 58 seats in 120 members’ strong parliament, down 2 seats from the last election. The main opposition Labour Party had an excellent showing under the new leadership of Jacinda Arden won 35.8 percent of the votes or 45 seats, up 13 seats from the last election. Winston Peters’ New Zealand First Party became the third largest party with 9 seats, down 2 seats compared to the last election. It was a poor showing from the Green Party, which won 5.9m percent of the votes or 7 seats, down 7 seats from the last election.

Labour Party was hoping to form a government with a coalition with the Green Party, however, the Green’s poor showing left then 9 seats short of a governing majority. The National Party is likely to form the government, however, this time with a new partner NZ First, as its traditional partners, Maori and United Future failed to gain any seat.

New Zealand dollar is down more than a percent on the political uncertainty and is currently trading 0.726 against the dollar.