17.12.202521:54:45UTC+00New Zealand GDP Growth Beats Forecasts

In the third quarter of 2025, New Zealand's economy experienced a resurgence, growing by 1.1% compared to the previous quarter, which contrasts with the 1% decline observed in the second quarter and surpasses the anticipated growth rate of 0.9%. The sector contributing most significantly to this growth was business services, which saw a 1.6% increase. This growth was largely driven by a 2.1% rise in professional, scientific, and technical services, including areas such as computer system design and related services. Additionally, the manufacturing sector posted a 2.2% growth, primarily fueled by the production of food, beverages, and tobacco. Conversely, the information media and telecommunications sector faced the largest decline, contracting by 2.1%.

On the expenditure front, exports increased by 3.3%, bolstered by gains in travel services, dairy, and insurance sectors. Gross fixed capital formation saw a 3.2% rise as businesses increased investments in physical fixed assets, including transport equipment as well as plant, machinery, and equipment. This was supported by imports of related capital goods and motor vehicles. Meanwhile, household consumption expenditure saw a modest rise of 0.1%. When viewed year-over-year, the GDP showed a 1.3% expansion, recovering from a 1.1% decline in the second quarter.