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New Zealand’s economy grew by 1.3% year-on-year in the three months to December 2025, marking a second consecutive quarter of annual expansion. This followed a 1.1% increase in the previous period but fell short of the anticipated 1.7% growth.
The upturn was underpinned by a recovery in the primary industries, led by a turnaround in agriculture, forestry, and fishing, which rose 0.5% after contracting 0.1% previously. The services sector also recorded strong gains, expanding 0.7% compared with the same pace in the third quarter. This was supported by solid growth in retail trade (1.3%), wholesale trade (0.9%), financial and insurance services (1.5%), and public administration and safety (0.5%).
By contrast, the goods-producing sector continued to shrink, though the pace of contraction eased to 0.4% from 1.7% previously. Within this group, utilities stood out with robust growth of 0.7%. On a quarter-on-quarter basis, overall economic output increased by 0.2%.
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