New Zealand healthcare spending projected to grow 6% annually

New Zealand's healthcare expenditure is projected to grow at a compound annual rate of 6% between 2025 and 2030. According to a Fitch Solutions report, this growth is supported by the 2026 Budget, which increases the Vote Health allocation by 8.4% to $19.19 billion for the 2026 and 2027 period. Additionally, the budget includes a $3.39 billion operating allocation for the 2029-2030 period.

Health New Zealand plans to invest $540.3 million over the coming year in clinical equipment, technology, and hospital improvements, including radiology upgrades and mobile diagnostic units. Long-term demand is expected from redevelopments in Whangārei, Tauranga, Hawke's Bay, and Palmerston North.

In political developments, ACT New Zealand has criticized a $1 billion energy fund proposal from Te Pāti Māori, arguing that the plan lacks identified savings and would increase the national debt. ACT spokesperson Simon Court noted that Treasury forecasts place net core Crown debt at approximately $192 billion, with annual debt servicing costs reaching about $9 billion.