The Reserve Bank had pencilled in flat growth for the June quarter, while many economists had expected the economy to contract, Willis said.
New Zealand’s economy grew 0.2 per cent in the June 2026 quarter, defying expectations of flat or negative growth despite a sharp fuel-price shock linked to the Middle East conflict.
Annual growth reached 2.6 per cent, supported partly by a rebound in construction and residential building.
However, elevated fuel prices and global uncertainty continue to pose risks for households and businesses.
She credited the outcome partly to New Zealand’s construction sector, which recorded its largest increase in activity since June 2023, supported by an uptick in residential building activity.
Stats NZ figures cited in the government statement put gross domestic product growth for the June 2026 quarter at 0.2 per cent, following upwardly revised growth of 0.9 per cent in the March quarter.
Over the year to June, New Zealand’s economy grew 2.6 per cent, a rate Willis said was higher than Australia, the United Kingdom, the United States, Canada and the European Union over the same period.
Willis also noted that 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 year.
For exporters, importers, manufacturers and retail sourcing teams, the figures point to continued economic activity but also ongoing cost pressure.
Willis added that global uncertainty had not gone away and fuel prices remain well above where they were at the start of the year, which will keep testing households and businesses in the months ahead.
Fibre2Fashion News Desk (CG)
