NZ Economy Shows Resilience Amid Fuel-Price Shock

New Zealand's economy showed resilience in the face of a sharp fuel-price shock linked to the Middle East conflict, growing 0.2% in the June quarter.

Despite predictions of flat or negative growth, Finance Minister Nicola Willis credited the outcome partly to the construction sector, which recorded its largest increase in activity since June 2023.

The sector's rebound was driven by an uptick in residential building activity, with Stats NZ figures showing gross domestic product (GDP) growth for the June quarter at 0.2%.

Annual growth reached 2.6%, a rate higher than several major economies, including Australia, the UK, US, Canada, and the European Union, over the same period.