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Economic data released yesterday, March 19, confirms the economy was growing at the end of last year, Finance Minister Nicola Willis says.
The latest Stats NZ figures show real Gross Domestic Product rising 0.2 per cent in the December quarter.
“While GDP data was volatile throughout 2025, the New Zealand economy picked up noticeably in the second half of the year, growing 1.1 per cent over the final six months after being relatively flat over the first half of the year,” Willis says.
Before the recent conflict in the Middle East, economic forecasters had been predicting growth to continue and strengthen in 2026.
“The conflict will have an impact on the economy, but we are starting from a much stronger position now than was the case in the past few years, when high inflation and high interest rates were weighing down on people,” Willis says.
“The full impact of the conflict will depend on the severity of the disruptions and how long they last, but realistic scenarios have so far shown growth continuing in 2026.”
However, the Labour Party says National’s “flatlining economy offers no relief for Kiwis”.
GDP growth of 0.2 per cent for the year shows an economy going nowhere and no relief for New Zealanders doing it tough, Labour finance and economy spokesperson Barbara Edmonds says.
“The latest data lays bare National’s failures: tens of thousands of jobs lost, prices still rising, and pitiful growth.
“Growth of 0.2 per cent is a long way from the ‘recovery’ [Prime Minister] Christopher Luxon and Nicola Willis keep talking about.
“National has cancelled or stalled infrastructure projects, costing jobs, especially in construction, while handing tax breaks to tobacco companies and property speculators.
“They have left New Zealand weaker and more exposed to global shocks. In fact, the economy is smaller than when they took office.
“Let’s be clear, what we’re going through now would be easier to deal with for families if National hadn’t made things much worse.
“Sadly, it’s New Zealand households who are left to fend for themselves as prices continue to rise.”
Edmonds says the National Party has offered no plan and no relief for families who are doing it tough.
“Labour has a plan to build a stronger, more resilient economy where everyone can get ahead.
“That starts with a Future Fund to back Kiwi jobs and innovation, and practical support like three free GP visits a year to help with the cost of living.”
