New Zealand GDP grows 0.8 pct in Q1

Alsharq Tribune-Otaify 

New Zealand's economy expanded in the March 2026 quarter, with gross domestic product (GDP) rising 0.8 percent, official data said on Thursday.

This follows a 0.5 percent increase in the previous quarter, Stats NZ reported.

Annual GDP growth was also 0.8 percent, with nine of 16 industries recording increased activity in the March 2026 quarter, the department said, adding GDP per capita rose 0.5 percent over the quarter.

Manufacturing was the largest contributor to growth, increasing 1.9 percent and accounting for about 8 percent of the economy, said Stats NZ general manager and macroeconomic spokesperson Jason Attewell.

The gain was driven by a 4 percent rise in transportation equipment and machinery manufacturing, along with a 1.7 percent increase in food, beverage and tobacco manufacturing, Stats NZ said.

Business services rose 1.1 percent and wholesale trade climbed 2.4 percent, while mining was the biggest drag on growth, falling 11.6 percent due to reduced oil and gas extraction.

Construction declined 1 percent in the quarter, with lower residential and non-residential building activity, Attewell said.

Measured by expenditure, GDP rose 1 percent. Business investment increased, with expenditure on plant and machinery up 5.5 percent, supported by a 9.4 percent rise in imports of related capital goods.

Household consumption edged up 0.5 percent in the March 2026 quarter, following a 0.1 percent decrease in the previous quarter, statistics showed.

Exports rose 3.1 percent in the quarter, led by dairy and food products, while imports increased 4.2 percent, according to the department.