New Zealand Q2 GDP Annual Growth Hits 3-Year High

New Zealand’s economy expanded by 2.6% year-on-year in the three months to June 2026, following an upwardly revised 1.7% increase in the previous quarter and exceeding expectations of 2.3% growth. It was the fourth consecutive quarter of annual growth and the fastest pace since Q2 2023, as all sectors expanded. Goods-producing industries expanded faster (4.4% vs 0.1% in Q1), boosted by manufacturing (5.4%), construction (3.7%), and electricity, gas, water, and waste services (3.6%). Service industries grew 2.1% (unchanged from Q1), due mainly to higher wholesale trade (7.4%), public administration and safety (4.0%), retail trade and accommodation (2.6%), and healthcare and social assistance (2.4%). Primary industries also continued to grow (0.3% vs 0.6%), driven by agriculture, forestry, and fishing (1.7%). On a quarterly basis, the economy advanced 0.2% in Q2, slowing from an upwardly revised 0.9% growth in Q1 but surpassing forecasts of 0.1%.

New Zealand’s economy expanded by 1.5% year-on-year in the three months to March 2026, matching the revised figure in the previous quarter and exceeding the expected 1.1% growth. It was the third consecutive quarter of annual growth, boosted by service industries (2.0% vs 1.8% in Q4 2025), due mainly to higher wholesale trade (7.7%), retail trade and accommodation (4.4%), arts, recreation, and other services (2.5%), public administration and safety (2.3%), and professional, scientific, technical, administration, and support services (2.0%). Conversely, goods-producing industries shrank 0.4%, weighed down by construction activities (-3.8%), while primary industries were unchanged, with agriculture, forestry, and fishing growing 1.7%, offset by a 10.9% fall in the mining sector. On a quarterly basis, the economy expanded by 0.8% in Q1 2026, accelerating from an upwardly revised 0.5% growth in Q4 2025 but falling slightly short of forecasts of 0.9%.

New Zealand’s economy expanded by 1.3% year-on-year in the three months to December 2025, marking its second consecutive annual growth. This followed a 1.1% expansion in the previous period and was less than the expected 1.7% growth. The rebound was driven by a recovery in primary industries, led by strong growth in agriculture, forestry, and fishing (0.5%, up from -0.1%). The services sector also strengthened markedly, rising 0.7% compared with 0.7% in the third quarter, supported by solid gains in retail trade (1.3%), wholesale trade (0.9%), financial and insurance services (1.5%), and public administration and safety (0.5%). Meanwhile, the goods-producing sector continued to contract but at a much slower pace (-0.4% versus 1.7%), with utilities posting robust growth of 0.7%. On a quarterly basis, the economy expanded by 0.2%.