GDP grows 0.8% in first quarter of 2025

Thursday, 19 June 2025

Gross Domestic Product has grown by 0.8% for the first quarter of 2025. Finance Minister Nicola Willis says that's something to celebrate.

The New Zealand economy had a slightly stronger than predicted first three months of the year, growing by 0.8%.

The latest Gross Domestic Product (GDP) figures, released on Thursday, showed quarterly growth of 0.8%. But New Zealand is still in catch up mode. As Stats NZ noted, annual growth remained negative.

“GDP fell 1.1% over the year ended March 2025 compared with the year ended March 2024,” the department reported on Thursday.

The 0.8% figure exceeded what most economists had predicted. The general consensus, from a number of leading economists, was that the economy had been expected to grow by 0.7%.

Gross Domestic Product (GDP) has grown 0.8% for the first quarter of 2025.

Primary industries, goods-producing industries and services industries all saw a boost in the first months of 2025, Stats NZ said.

Following those results, Finance Minister Nicola Willis said it was time to celebrate.

“What we now know is that we’ve had six months of sustained growth in the economy at far higher rates than was being forecast,” Willis told Stuff, on Thursday, after the latest result was confirmed.

Finance Minister Nicola Willis says the latest GDP results are worth celebrating.

“We also know that the predictions are that that growth continues into the rest of this year. So that is unashamedly positive news,” she said.

Willis said there would be challenges ahead, with global uncertainty thanks to wars in the Middle East and Eastern Europe and the ongoing issue of tariffs coming from the US. But she said that, so far, New Zealand had done okay during those issues.

“We’ve had twice the rate of growth in the Reserve Bank or Treasury we’re forecasting. This is the second quarter in a row where we’ve outperformed expectations. This is a good day,” she said.

Compared to out closest counterpart, Australia, Willis said these GDP results also stood out.

“I’d also point out that in Australia, their first quarter of growth was only 0.2%. So Kiwis, we did four times as well as the Aussies in the first three months of this year,” she said.

Business services was up 2.4% while manufacturing was also up 2.4%. Health care and social assistance was up 1.4%. Agriculture also had a strong quarter up 0.8%.