NZ Economy Shows Resilience Amid Conflict and Unemployment

New Zealand's economic outlook is looking brighter despite ongoing conflict in the Middle East and rising unemployment. According to Infometrics' June 2026 Quarterly Economic Monitor, economic activity rose 2.6 percent in the June 2026 quarter and 1.7 percent over the year earlier.

Infometrics principal economist Nick Brunsdon noted that 'all 16 regional economies expanded in the June 2026 quarter,' with growth led by Southland, Otago, Canterbury, and Nelson-Tasman, which grew at over 2 percent in the year to June 2026.

However, job numbers rose only 0.4 percent in the June 2026 quarter, including a 0.3 percent lift in Auckland, following a decline over the past two years. Brunsdon said that 'despite clear economic headwinds from conflict in the Middle East, economic activity might not have been as badly hit as first feared.'

Infometrics estimates that household spending remained delicate, with card spending rising just 0.6 percent in the year to June 2026, and spending volumes falling 1.5 percent over the past year once retail inflation was accounted for.