New Zealand’s economy grew by 0.2% quarter-on-quarter in Q4 2025, slowing from a 0.9% expansion in Q3 and coming in below market expectations of 0.4%.
On the production side, rental, hiring, and real estate services rose 0.8%, providing the largest positive contribution to growth, led by rental and hiring services and non-residential property operators. Retail trade and accommodation increased 1.3%, driven primarily by accommodation and pharmaceutical retailing. In contrast, construction was the largest drag on activity, contracting by 1.4%.
On the expenditure side, exports edged up 0.1%, with gains in both goods and services. Gross fixed capital formation declined 2.2%, as businesses cut back investment in physical fixed assets, including plant, machinery, equipment, and transport equipment, despite higher imports of intermediate goods. Household consumption expenditure slipped 0.1%.
On an annual basis, GDP grew 1.3%, matching the pace recorded in Q3.
