New Zealand counts votes in razor-thin election after campaign centred on cost of living

Early results in New Zealand's general election show a neck-and-neck race between the country's two main parties following a campaign that centred on the cost of living and the economy.

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Prime Minister Christopher Luxon and his National Party-led right-wing coalition are hoping to secure a second term as they face off against main challenger Chris Hipkins of the Labour Party.

With polls closed and the vote count underway, the outcome is too close to call. Labour is edging ahead on 29.71% of votes to the National's 29.41% at the time of writing.

The Green Party is next on 13.96% of votes, followed by National Party coalition partners ACT New Zealand on 10.63% and the New Zealand First Party on 9.41%.

Just over 42% of votes have been counted so far.

None of the parties on the ballot are expected to secure a majority in parliament.

In New Zealand, people cast a party vote as well as an electorate vote in a general election.

With their electorate vote, New Zealanders vote for a candidate to represent their local electorate (voting area) in parliament. They also vote for the party they want to be in government.

People of Māori descent are able to choose between the general roll and the Māori roll. Selecting the Māori roll means a voter picks a candidate in the Māori electorate they live in. If they opt for the general roll, they vote for a candidate in the general electorate.

As an example, someone who lives in Rotorua on New Zealand's North Island that chose the Māori roll would vote in the Waiariki electorate. The candidate who won the most votes in the Māori electorate of Waiariki would then become their local MP.

If they chose the general roll, they would vote in the Rotorua electorate. The person who won the most votes in the general electorate of Rotorua would become their local MP.