New Zealand Prime Minister Jacinda Ardern's sudden resignation on Thursday may have come as a shock to the rest of the world, but as her popularity waned domestically, some had questioned how long she would remain in power.

Her successor as Labour leader and prime minister faces a stern test in a general election in October, with support for the party falling and the country expected to fall into a recession next quarter.

Despite her high global profile, Ardern's Labour Party has slid in the polls, hurt by rising living costs, growing crime and concern about social issues.