New Zealand’s economy expanded less than anticipated in Q1 2026, signaling potential weakness amid revised prior-quarter growth.
New Zealand’s gross domestic product grew 0.8% quarter-on-quarter in Q1 2026, falling short of expectations for a stronger rebound. The print marked an improvement from the revised 0.5% expansion in Q4 2025, previously reported as 0.2%.
Analysts had anticipated a sharper acceleration following the prior quarter’s upward revision. The data reflects subdued economic momentum, with growth remaining below pre-pandemic trends despite recent policy support.
Markets are assessing the implications for monetary policy, as weaker-than-expected growth may temper expectations for further tightening.