NZ Economy in April 2025: What Kiwis Need to Know Now
By Kiwi Money Matters · Updated April 6, 2025
Autumn has officially arrived in Aotearoa, and with it comes a fresh round of economic updates worth keeping an eye on. Whether you're planning to invest, save, or just want to stay informed, April brings some big shifts across interest rates, visas, and global trade. Here’s what’s new, and why it matters.
Another Rate Cut? All Eyes on RBNZ
The Reserve Bank of New Zealand is widely expected to trim the Official Cash Rate (OCR) by 25 basis points this week, bringing it to 3.50%. That would mark five cuts in a row since last August—a clear signal that the central bank wants to keep the recovery momentum going.
Growth is picking up (Q4 2024 GDP rose 0.7%), and inflation has cooled to 2.2%—comfortably within the 1–3% target range. Still, households expect prices to rise faster, with inflation expectations sitting around 4.9%. The RBNZ is walking a tightrope: supporting growth without reigniting inflation.
US Tariffs Send a Ripple Through Kiwi Trade
A sudden 10% blanket tariff on all U.S. imports is now in play, shaking global supply chains and raising questions for New Zealand exporters. It’s too soon to know the full impact, but it’s safe to say our primary industries—especially dairy and meat—could feel the squeeze.
Economists suggest further OCR cuts may be needed if export demand takes a serious hit. For those with overseas-facing businesses or investments, this is one to watch closely.
Inflation: Under Control, But Perception Lags
Officially, inflation is in check. But in practice? Many Kiwis still feel the pinch. Essentials like rent and fuel are still rising faster than wages in some regions, which helps explain the disconnect between stats and sentiment.
If you’re budgeting or renegotiating a mortgage, this is a good time to take advantage of easing interest rates—but keep a cushion. The economic mood is stable, but still cautious.
New Investor Visa Opens the Door Wider
Starting this month, a revamped investor visa scheme is in place. There are now two options: NZD 5 million over 3 years (Growth Visa), or NZD 10 million over 5 years (Balanced Visa). Property and bonds are in. English test? Out.
Immigration NZ has already seen a spike in applications, particularly from U.S.-based investors. If you’ve ever considered residency via investment, this might be one of the most accessible windows we’ve seen in years.
Agri Snapshot: Beef Booms, Dairy Steady
In the paddocks, the story is mixed. Dairy output is tracking 2.8% higher than last year, though recent heatwaves may trim production ahead. Beef prices remain a standout, bolstered by tight supply and strong offshore demand.
Lamb prices have held firm above $8/kg, helping cushion rural incomes. For farming families and agri investors, the outlook is cautiously positive.
FAQ
- 📉 What's the OCR now?
- It's expected to be 3.50% following the RBNZ's April 9 announcement.
- 💸 Is inflation a problem?
- Not really—official CPI is 2.2%, but many still feel higher prices in day-to-day life.
- 🛂 Can I use property for investor visa now?
- Yes! Both the new visa categories now allow property and bond investment.
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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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