GDP shows economy grew through fuel shock

GDP shows economy grew through fuel shock

Today's GDP figures show the economy grew in the June quarter, defying expectations of a contraction, Finance Minister Nicola Willis says. Stats NZ figures put GDP growth for the June 2026 quarter at 0.2 per cent, following upwardly revised growth of 0.9 per cent in the March quarter. "The first half of this year was tough as families and businesses dealt with a sharp spike in fuel prices caused by the conflict in the Middle East. "The Reserve Bank had pencilled in flat growth for the June quarter, and many economists had been picking the economy to shrink. Instead, it grew. "That’s a credit to New Zealand's construction sector, who saw their largest increase in activity since June 2023 with an uptick in residential building activity. “Our exporters also held up better than expected and kept the economy moving through a difficult few months. “A growing economy means more jobs and higher wages. It means more money coming into communities. It means more doctors, nurses and teachers, and better schools and hospitals. "Over the year to June, New Zealand’s economy grew 2.6 per cent. That’s higher than Australia, the United Kingdom, the United States, Canada and the European Union across the same period. “National has a plan to build on this economic growth – because that is how we can get the books back in order with no new taxes and give Kiwis the confidence that if you work hard you can get ahead. “Our responsible economic management means growth is expected to average 2.7 per cent over the next four years, with 220,000 new jobs being created by 2030 and wages growing faster than household bills every single year. "Global uncertainty hasn't gone away. Fuel prices remain well above where they were at the start of the year, and that will keep testing households and businesses in the months ahead. “Despite the international situation, New Zealanders can be confident the recovery is well underway.”