New Zealand GDP Growth Misses Forecasts

The economy of New Zealand expanded 0.2% on quarter in Q4 2025, slowing from a 0.9% rise in Q3 but remaining below forecasts of 0.4%. Rental, hiring, and real estate services rose 0.8% and made the largest upward contribution to growth, driven by rental and hiring services and non-residential property operators. Also, retail trade and accommodation was up 1.3%, driven by accommodation and pharmaceutical retailing. On the other hand, construction was the largest downward contributor, down 1.4%. On the expenditure side, exports were up 0.1%, with increases seen in goods and services. Gross fixed capital formation fell 2.2%, as businesses invested less in physical fixed assets, including plant, machinery, and equipment and transport equipment, despite a rise in imports of intermediate goods. Household consumption expenditure edged down 0.1%. Year-on-year, the GDP expanded 1.3%, maintaining the same growth rate seen in Q3.