New Zealand’s PM sees path back to government after knife-edge poll

New Zealand's Prime Minister Christopher Luxon expressed confidence on Sunday that his right-wing coalition could form a government after a closely contested election. Both the National Party and the center-left Labour failed to secure enough seats to govern alone, with the two main parties tied at 29% in the vote - a gap of just a few thousand votes separating them.

Once all votes, including those from New Zealanders living abroad, were counted by November 27, Luxon would lead a caretaker government until meaningful negotiations could take place. Labour leader Chris Hipkins acknowledged the difficulty of determining the final outcome and pledged a collaborative approach for the next parliament.

The election highlighted the rise of centrist parties like Opportunity, which won over 5% of the vote, potentially acting as a swing vote in forming a new government. The campaign was dominated by concerns over the high cost of living, which has been exacerbated by global fuel price increases stemming from the Middle East conflict.

Despite National's narrow path to power, Deputy leader Nicola Willis and Housing Minister Chris Bishop were unlikely to return to parliament due to their parties' poor performance.