Jacinda Ardern to become New Zealand's youngest prime minister in 150 years

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She said Peters, whose declaration of support for Ardern on Thursday tipped the election her way, successfully joined a Labour-led coalition in 2005.

In her acceptance speech, Ardern noted she wanted to build a government "for all New Zealanders." and that she felt "privileged and humbled" to be in new position.

"It was during Mr Peters opening remarks and comments that I really got a sense of that shared common ground, particularly that comment about all New Zealanders benefitting from economic prosperity - that was the moment I thought "he's going with us", Ardern told RNZ.

Ousted New Zealand Prime Minister Bill English conceded the election, calling Ardern's success "a remarkable performance" given her party's fading political status just 10 weeks ago. Ardern isn't New Zealand's version of Donald Trump. He was also 37, but born later in the year.

NZ First leader Winston Peters may be the country's new Deputy PM.

By election day on September 23, expectations had shifted.

Ardern denied her government was "a coalition of the losers" considering the outgoing National Party claimed 44.4 percent of the vote, well above Labour (36.9), NZF (7.2) and the Greens (6.3).

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While Labour and the Greens share many priorities, some in the new coalition may be looking nervously at the United Kingdom, where the Democratic Unionist Party, in a similar agreement with the governing Conservative Party, has refused to back several policies and voted with the opposition in parliament.

Green Party leader James Shaw said current laws meant the entire drug trade was being controlled by gangs.

"We have been gifted by the people of New Zealand an opportunity, and it is for us to make the most of that". Ardern said the details would be released in the coming days.

National leader Bill English had been PM since December past year.

But a surprise decision by then-Labour leader Andrew Little to stand aside at the start of the campaign made room for Ardern, a three-term member of Parliament. The surge to Labour was quickly coined "Jacindamania". It's traditional for political leaders to congratulate and welcome newly elected colleagues from around the world, and given Australia's close relationship to New Zealand it might have been fair to expect the same thing this time around.

Prime Minister Malcolm Turnbull phoned Ms Ardern on Thursday night to convey his congratulations.