New Zealand’s economy has recorded modest growth to close out 2025, with gross domestic product rising by 0.2 percent in the December quarter.
The latest figures show the economy continuing a gradual recovery, following a stronger 0.9 percent increase in the September quarter.
The result means economic activity has now lifted in three of the past four quarters, signalling a slow but steady return to growth after earlier periods of contraction and volatility.
While the increase is positive, it came in below expectations from many economists, highlighting the fragile nature of the recovery. Annual growth sits at just over one percent, reinforcing the view that momentum remains limited.
Tourism and related sectors provided some of the lift in the December quarter, with increased spending by international visitors flowing through to areas such as retail, accommodation, and transport services.
However, not all parts of the economy performed strongly. Construction activity declined, weighing on overall growth, with reduced building activity-particularly in the non-residential sector-contributing to the softer result.
On a per-person basis, economic output remained largely unchanged, as population growth offset the overall increase in GDP.
The data reflects an economy still in a rebuilding phase, with gains being made but not yet strong enough to signal a full recovery. Analysts say global uncertainty, particularly around energy markets and geopolitical tensions, continues to pose risks to future growth.
The latest figures provide a snapshot of the economy before more recent international developments, including rising fuel prices and global instability, which are expected to place further pressure on households and businesses in 2026.
