What is the coalition decision costing New Zealand?

  • 11/10/2017

The future of the country is currently on the negotiating table, as NZ First and Winston Peters decide to form a Government with either National or Labour and the Greens.

But what is happening to the country as we wait?

"Over the past month or so the Kiwi dollar has been steadily trending down. There's a range of factors at play here - we've got a stronger US dollar, we've had some weak data in New Zealand particularly housing and construction," Westpac chief economist Dominick Stephens told Three's The Project.

"But the other thing weighing on markets' minds are the election and the coalition negotiations."

The Kiwi dollar has actually trickled down to its lowest point in four months.

While New Zealand is mostly operating as normal in caretaker mode, some big roading projects have ground to a halt.

For example, Nelson's plans for a long awaited and controversial Southern Link are on standby. National is all for it, but Labour and the Greens aren't.

Winston Peters has decided to make a coalition decision on Friday.

Watch the video.