New Zealand Economy Update: Latest GDP Growth Insights

How Did the Economy Perform in 2024?

In 2024, New Zealand’s economy had a tough start but improved later in the year. According to Stats NZ, the economy grew by 0.7% in the fourth quarter (October–December). That might not sound huge, but it was a big deal—it meant we officially came out of a technical recession.

For the full year, growth was slower than usual at around 0.6%. But the good news is that things are picking up again, especially with exports and tourism gaining momentum.

What Helped the Economy Grow?

Tourism Recovery: More tourists came back in 2024, helping hotels, restaurants, and travel businesses bounce back.
Export Strength: Dairy, meat, and fruit exports remained strong—especially to countries like China and Australia.
Government Projects: Spending on roads, housing, and public infrastructure gave construction a boost.

What’s Expected for 2025?

The International Monetary Fund (IMF) expects New Zealand’s economy to grow by about 1.4% in 2025. That’s still slower than the long-term average, but it’s an improvement. Inflation is coming down, and the Reserve Bank of New Zealand (RBNZ) may lower interest rates later in the year, which could help households and businesses.

Are There Any Risks?

High Interest Rates: Borrowing costs are still high, which makes it harder for people to buy homes or for businesses to invest.
Global Uncertainty: A slowdown in big economies like China could affect demand for NZ exports.
Cost of Living: Even though inflation is easing, prices are still higher than before, which affects consumer spending.

Frequently Asked Questions (FAQ)

Q: Is New Zealand still in a recession?
A: No. The country exited a technical recession in late 2024 with positive GDP growth.
Q: Will the economy grow faster in 2025?
A: Growth is expected to pick up slightly to 1.4%, supported by exports and possibly lower interest rates.
Q: What does this mean for everyday Kiwis?
A: A stable economy could mean more job security, slower price increases, and possibly lower mortgage rates later this year.

New Zealand's economy is slowly recovering. While challenges remain, the outlook for 2025 is more hopeful than last year. Keeping an eye on inflation, global trends, and Reserve Bank policy will help us stay informed and prepared.

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📌 About the Author

Kiwi Money Matters is written and maintained by a New Zealand-based writer with hands-on experience in finance and accounting since 2015.

All posts are personally researched, written to ensure clarity and trustworthiness for everyday Kiwis.

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