New Zealand Annual GDP Contraction Softens in Q4

New Zealand's economy contracted by 1.1% year-on-year in the December quarter of 2024, slightly outperforming expectations of a 1.4% decline, following a 1.6% drop in the prior quarter.

The downturn was primarily driven by a 5.6% contraction in goods-producing industries, worsening from a 4.8% decline in Q3.

However, the service industries saw a smaller decline of 0.7%, down from a 0.5% growth in the previous quarter, while primary industries grew by 2%, slightly up from 1.9% in Q3.

On a quarterly basis, GDP expanded by 0.7%, reversing a 1.1% contraction in the previous quarter.