GDP grows 0.8% in March quarter

The New Zealand economy grew in the first quarter of 2025, with GDP increasing by 0.8% in figures released today by Stats NZ.

It followed a revised 0.5% increase in the December 2024 quarter.

Activity increased in the March 2025 quarter across all three high-level industry groups: primary industries, goods-producing industries, and services industries.

"At a more detailed industry level, nine of the 16 industries increased, with the largest rises in business services and manufacturing," economic growth spokesperson Katrina Dewbery said.

An increase in the production of machinery and equipment led a rise in manufacturing.

The largest decreases were seen in arts and recreation services, and information, media and telecommunications.

Household expenditure rose by 1.4% this quarter, up from 0.1% last quarter.

Spending on services, durables, and non-durables were all up, with the increased services spending driven by rises in cultural services, other digital services imports, and accommodation services.

Finance Minister Nicola Willis said the "surprise" economic result was great news for workers, families and businesses.

"This is the second consecutive quarter in which growth outstripped forecasters’ assumptions and confirms the economy was gaining momentum late last year and at the start of this year."

She said New Zealanders should "take heart that the country is back on track" despite increases in global conflicts, the introduction of new tariffs, and what she called "six years of economic mismanagement" by the previous Labour government.

"I know many households and businesses are still doing it tough but the steps the Government has taken to stop wasteful spending, grow the economy and provide more support to households are paying dividends. So are the efforts of the private sector."

Willis said the money was flowing through to businesses thanks to the steps the Government had taken to "reduce red tape, incentivise investment and boost tourism, and the export records being set by New Zealand farmers and growers".

"Inflation is down, interest rates are down, and many families have a little more money in their pockets."