New Zealand's economy has hit an unexpected rough patch with its GDP shrinking by 0.9% in the second quarter of 2025, according to the latest data available, updated on September 17. This comes after a modest growth of 0.9% in the first quarter of the year, marking a significant quarterly reversal in the economic trajectory.
The quarter-over-quarter comparison indicates a stark contrast to the previous performance, signaling potential economic challenges ahead. Economists and policymakers will likely delve into the underlying causes of this decline, whether they stem from domestic factors or external economic pressures.
As the nation grapples with this contraction, stakeholders will be keeping a close eye on economic policies and market reactions to navigate the path forward, aiming to restore growth and stability in the subsequent quarters.
