New Zealand’s economy grew 0.8% in the March 2026 quarter, marking a third consecutive quarter of growth and building on a revised 0.5% increase in the December 2025 quarter.
Stats NZ says nine of the economy’s 16 industries recorded increased activity during the quarter.
Manufacturing was the largest contributor to growth, rising 1.9% during the quarter.
“New Zealand’s manufacturing industry is a large and diverse sector of the economy, making up around 8.0% of GDP,” says Stats NZ general manager and macroeconomic spokesperson Jason Attewell.
The increase was driven by a 4% rise in transportation equipment, machinery and equipment manufacturing, along with a 1.7% increase in food, beverage and tobacco manufacturing.
Business services increased 1.1% and wholesale trade rose 2.4%, with the latter supported by higher machinery and equipment wholesaling activity.
Mining was the largest downward contributor to GDP, falling 11.6% due largely to lower oil and gas extraction. Construction activity declined 1%, reflecting falls in both residential and non-residential building activity.
GDP per capita increased 0.5% during the quarter.
The expenditure measure of GDP rose 1%, following a 0.4% increase in the previous quarter. Business investment increased, with gross fixed capital formation up 2% and spending on plant, machinery and equipment rising 5.5%. Imports of related capital goods increased 9.4%.
Household consumption expenditure increased 0.5%, reversing a 0.1% decline in the previous quarter. The increase was driven by spending on audio-visual equipment, used motor vehicles and grocery foods.
Export volumes rose 3.1%, led by dairy products, other food and beverage exports, and travel services, while import volumes increased 4.2%.
Finance Minister Nicola Willis says the figures show the economy had strong momentum at the start of 2026.
“New Zealand’s economy grew almost three times faster than Australia’s in the March 2026 quarter and around twice as fast as that of the United States,” Willis says.
“This result builds on the growth of the previous two quarters. Over the nine months to March, the economy grew 2.1%. Growth in the first quarter is more than twice what Treasury forecast at Budget 2026.”
Willis says the Government remains cautious about the outlook, citing uncertainty created by the conflict in the Middle East.
“Economic recoveries rarely follow a straight line, particularly in an uncertain global environment, and we must not let international events send us off course,” she says.
