South Island Regions Lead NZ Economic Recovery

New Zealand's economic downturn has been prolonged, but some regions are bucking the trend. According to Kiwibank's Regional Score update, Otago and Canterbury have emerged as the best-performing regions in the country.

The chief economist at Kiwibank, Jarrod Kerr, attributed the strong performance of these regions to tourism and agriculture. He noted that while the economy is improving, it's doing so at different speeds across the country.

Kerr emphasized that many households and businesses in the North Island are still feeling the pressure of weak demand, higher costs, and economic uncertainty. He expressed disappointment that there has been no meaningful nationwide recovery yet.

The economist pointed out that the downturn started in 2023, followed by recessions in 2024 and 2025. He also highlighted the impact of the housing market on household and business confidence, particularly for small businesses who often rely on property values to secure loans.