New Zealand election: seven-seat Opportunity Party may decide who governs

New Zealand's general election on Saturday, November 7, produced a parliament with no clear majority, and a party that won seven seats may decide who governs.

With about 95-97% of votes counted, the governing centre-right National Party and the opposition Labour Party each held around 29% of the popular vote, separated by only a few thousand ballots. National won 42 seats and Labour 36, both far short of a simple majority in the 130-seat parliament.

National's coalition partners, ACT with 13 seats and New Zealand First with 12, would give the ruling bloc 67 seats — a majority of one. That margin could be overturned when special ballots, including votes cast overseas, are counted. Final results are expected by November 27.

The centrist Opportunity Party crossed the 5% threshold to enter Parliament with an apparent seven seats, positioning it as a potential kingmaker.

Prime Minister Christopher Luxon said his coalition had a path to return to power. Labour leader Chris Hipkins did not concede, saying the shape of the next government will remain uncertain for a while.

The campaign was dominated by the cost of living and an economy hit by the war in the Middle East, with unemployment at its highest in over a decade.

The outcome will determine New Zealand's next government and its policy direction on taxes and the economy, with a newcomer party holding the balance of power.

No timeframe has been set for when a government will be formed.