NZ Economy Defies Headwinds to Grow 2.6% Despite Middle East Conflict
New Zealand's economy grew 2.6% year-on-year in the June 2026 quarter, defying expectations and disruption from conflict in the Middle East.
The strongest gains remained concentrated in the South Island, with regions like Southland, Otago, Canterbury, and Nelson-Tasman growing at over 2%pa in the year to June 2026. Parts of the North Island are joining in too, with strong growth seen in both Waikato and the Bay of Plenty.
According to Infometrics principal economist Nick Brunsdon, 'growth continues to be led from the south'. He attributes the resilience of the result partly to a soft comparison base and a milder-than-feared economic hit so far. The primary sector remains a key driver, though growth is now showing up across most industries.
The pace of recovery through the rest of 2026 remains uncertain due to ongoing global instability, as cautioned by Brunsdon.