NZ Economy Beats Expectations with 0.2% Growth Despite Fuel Price Shock
New Zealand's economy showed resilience in the second quarter of this year, despite higher fuel prices. The country's gross domestic product (GDP) rose by 0.2% in the June 2026 quarter, following a 0.9% increase in the March 2026 quarter.
This growth was ahead of the Reserve Bank's forecast of a flat quarter and within the range predicted by bank economists, who had estimated growth of 0.1-0.3%. The 0.2% growth shows that New Zealand handled the Iran conflict and April's oil price shock better than initially expected.
The construction industry was the largest upward contributor to GDP in the quarter, with a 2.7% increase. This was the highest rise since the June 2023 quarter, driven by an increase in residential building activity. Public administration and safety also contributed to the growth, up 2.0%.
However, some sectors were negatively affected by higher fuel prices, including transport, postal and warehousing, which decreased by 1.7%, and retail trade and accommodation, down 1.0%. GDP per capita rose 0.1% during the quarter.