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New Zealand Economy to Recover: Growth Projected by 2026

3/17/2025

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Summary

Story summary

New Zealand's economy is projected to grow by 0.3% to 0.5% in late 2024 after a recession.
The NZIER anticipates a 0.8% contraction for the year ending March 2025, with a recovery of 2.1% in 2026.
Construction remains weak, while retail and tourism sectors are improving.
Inflation is expected to reach 2.3% by March 2025, driven by a weaker New Zealand dollar.

History

Historical Context

New Zealand's projected economic growth follows a historical pattern of recovery after recessions. The COVID-19 pandemic severely impacted tourism, a key sector, similar to past economic downturns. The government's focus on revitalizing tourism mirrors strategies from previous recoveries, emphasizing the sector's vital role in national GDP and employment.

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Story summary

New Zealand's economy is projected to grow by 0.3% to 0.5% in late 2024 after a recession.
The NZIER anticipates a 0.8% contraction for the year ending March 2025, with a recovery of 2.1% in 2026.
Construction remains weak, while retail and tourism sectors are improving.
Inflation is expected to reach 2.3% by March 2025, driven by a weaker New Zealand dollar.

1 / 2