NZ Economy Beats Expectations, Annual Growth Hits 2.6%

New Zealand's economy surprised onlookers by growing 0.2% in the June 2026 quarter, outperforming the Reserve Bank's forecast of a flat outcome.

The country's GDP annual growth rate jumped to 2.6%, its strongest pace since June 2023.

Construction was a standout performer, rebounding by 2.7% for the quarter after a period of rebalancing.

The sector was supported by strong external demand, while services delivered a mixed picture with wholesale and public administration outperforming but discretionary spending weaker due to fuel price shock.