New Zealand’s economy expanded by just 0.2% qoq in Q4, missing expectations of 0.4% qoq and slowing sharply from Q3’s 0.9% qoq pace. On an annual basis, GDP rose 0.2% yoy, marking the first year-on-year expansion since the year ended September 2024, but the weak quarterly print highlights fading momentum into the end of the year.
The details show a mixed picture across sectors. Growth was supported by services, with rental, hiring, and real estate activity leading the increase at 0.8% qoq. Other contributors included retail trade and accommodation (+1.3%), financial and insurance services (+1.5%), information media and telecommunications (+1.9%), and arts and recreation (+2.0%). These gains suggest domestic demand held up in parts of the services economy.
However, the broader picture remains soft. GDP per capita was flat, underscoring limited improvement in underlying living standards. Construction fell -1.4% qoq, acting as the largest drag on growth.
