NZ Economy Grows Strongly in Q1 2026 with GDP Up 0.8% Amid Global Uncertainty

Today’s GDP figures confirm the economy had real momentum at the beginning of this year, Finance Minister Nicola Willis says.

Stats NZ figures put GDP growth for the March 2026 quarter at 0.8 per cent.

New Zealand’s economy grew almost three times faster than Australia’s in the March 2026 quarter and around twice as fast as that of the United States.

This positive movement reflects the hard work of New Zealanders - the farmers, tradies, exporters, entrepreneurs and workers - who have kept going through really challenging economic conditions.

This result builds on the growth of the previous two quarters. Over the nine months to March, the economy grew 2.1 per cent. Growth in the first quarter is more than twice what Treasury forecast at Budget 2026.

Encouragingly, GDP per capita rose 0.5 per cent in the quarter and real purchasing power rose 0.4 per cent.

However, we also have to be realistic. While this result reflects an economy that was recovering strongly at the start of the year, the conflict in the Middle East has created significant uncertainty and we expect that to weigh on growth in the second quarter.

Kiwis will be relieved that pressure on fuel prices is beginning to ease following the announcement of a peace deal, with prices at the pump continuing to fall. The international oil prices are now lower than what Treasury was forecasting at Budget 2026.

Business investment for the quarter reached 3.7 per cent, which will have been supported by our Investment Boost tax policy.

Economic recoveries rarely follow a straight line, particularly in an uncertain global environment, and we must not let international events send us off course.

The Government remains focused on restoring the country's finances so we can continue investing in the things that matter most to New Zealanders, including better health services, new schools and critical infrastructure.

While we remain cautious in the short term, Treasury expects economic growth to strengthen over time. The stronger growth trajectory over the longer term will create more jobs and higher incomes.