NZ Economy Defies Expectations, Grows 0.2% Despite Fuel-Price Shock

New Zealand's economy defied expectations and grew 0.2% in the June quarter, despite a sharp fuel-price shock linked to the Middle East conflict.

This growth is partly attributed to a rebound in construction and residential building activity, which recorded its largest increase since June 2023.

Annual growth reached 2.6%, with Finance Minister Nicola Willis stating that this rate is higher than several major economies, including Australia, the UK, the US, Canada, and the European Union.

However, fuel prices remain elevated, and global uncertainty continues to pose risks for households and businesses.