New Zealand’s economy expanded by 0.8% qoq in the first quarter of 2026, matching market expectations and accelerating from the 0.5% qoq growth recorded in the final quarter of 2025. GDP per capita rose 0.5% qoq, adding to signs that the recovery is becoming more broad-based. On an annual basis, economic activity increased 0.8% in the year to March 2026.
Growth was supported by gains across much of the economy, with nine of sixteen industries reporting higher activity during the quarter. Manufacturing was the largest contributor to growth, rising 1.9% qoq. Within the sector, transportation equipment, machinery and equipment manufacturing jumped 4.0%, while food, beverage and tobacco manufacturing increased 1.7%. Business services rose 1.1%, driven by professional, scientific and technical services, while wholesale trade gained 2.4% on stronger machinery and equipment wholesaling activity.
The details suggest the economy is gradually regaining momentum, although pockets of weakness remain. Mining fell sharply by -11.6%, largely due to lower oil and gas extraction, while construction contracted by -1.0% as both residential and non-residential building activity declined.
By industry grouping, services contributed 0.33 percentage points to overall GDP growth, while goods-producing industries added 0.08 percentage points. The figures reinforce the view that New Zealand’s recovery is becoming more established, though uneven sector performance is likely to keep the Reserve Bank of New Zealand attentive to signs of slowing demand in interest-rate-sensitive sectors.
New Zealand GDP – Q1 2026
| Indicator | Q1 2026 | Expected |
|---|---|---|
| GDP Q/Q | 0.8% | 0.8% |
| GDP Per Capita Q/Q | 0.5% | |
| GDP Y/Y | 0.8% |
GDP Growth by Industry Group
| Industry Group | Growth Q/Q | Contribution to GDP Growth |
|---|---|---|
| Primary Industries | -0.5% | -0.02pp |
| Goods-Producing Industries | 0.4% | 0.08pp |
| Services Industries | 0.5% | 0.33pp |
