New Zealand’s economy has turned a corner, posting a 0.7% increase in gross domestic product (GDP) for the December 2024 quarter, according to latest figures released by Stats NZ.
The rise follows a 1.1 percent contraction in the September quarter, offering fresh optimism as the country moves into 2025.
The latest data shows growth across 11 of the 16 measured industries, with rental, hiring, and real estate services; retail trade and accommodation; and healthcare and social assistance leading the charge. Meanwhile, construction and information media and telecommunications recorded the largest declines.
“Higher spending by international visitors led to increased activity in tourism-related industries such as accommodation, restaurants and bars, transport, and vehicle hiring,” Stats NZ economic growth spokesperson Katrina Dewbery says.
The positive figures have been welcomed by Finance Minister Nicola Willis, who said they confirm New Zealand’s economic recovery is underway.
“We know many families and businesses are still suffering the after-effects of high inflation and interest rates, but today’s data confirms that New Zealanders can look forward to a better future,” Willis says.
A notable highlight from the latest GDP figures was the 0.4% increase in GDP per capita, the first rise in two years.
Additionally, exports surged 3.5%, partly driven by increased international visitor spending in key tourism-related sectors.
Willis pointed to the Government’s Going for Growth plan, which outlines over 80 initiatives designed to support expansion and stability.
“The Government is focusing on the things that make a difference to the quality of people’s lives.
“Economic growth is the key to raising living standards, creating higher-paying jobs, and delivering the public services New Zealanders want and deserve,” Willis says.
