New figures from Stats NZ show New Zealand’s economy expanded in the third quarter of 2025, with GDP climbing 1.1%.
Gross domestic product (GDP) serves as a key indicator of overall economic growth.
“GDP rose in three of the last four quarters but fell 0.5% over the year ended September 2025 compared with the year ended September 2024,” economic growth spokesperson Jason Attewell said.
“The 1.1% rise in economic activity in the September 2025 quarter was broad-based, with increases in 14 out of 16 industries.”
“This is in contrast to the June 2025 quarter, when GDP decreased in 10 industries.”
Business services led economic growth in the September 2025 quarter, surging 1.6% and fuelled by a 2.1% rise in professional, scientific, and technical areas like computer systems design.
Manufacturing held a strong comeback, rising 2.2% after a 3.9% plunge in the June quarter, spearheaded by food, beverage, and tobacco manufacturing.
Meanwhile, information media and telecommunications exerted the largest drag on growth, dropping 2.1%. GDP per capita climbed 0.9% over the quarter.
Attewell said gross fixed capital formation rose 3.2%, with businesses ramping up investments in physical fixed assets during the September quarter.
“There were increases in transport equipment and plant, machinery, and equipment, supported by imports of related capital goods and motor vehicles.”
Business investment gained momentum, with gross fixed capital formation rising 3.2% as companies boosted spending on transport equipment, machinery, and plant.
Household consumption inched up 0.1%, with stronger spending on durable goods like motor vehicles and electronics, though partly offset by softer outlays on services and non-durables.
For Finance Minister Nicola Willis, the lift was “welcome news” heading into the holiday season.
“This is what healthy growth looks like. With all the indicators pointing to further growth in the final quarter of the year, Kiwis can go into Christmas confident the economy has finally turned the corner after a tough few years,” she said.
She noted that the Treasury and the Reserve Bank forecast accelerating growth and declining unemployment, citing it as proof the government’s strategy is paying off.
Willis also expressed particular delight at gains in manufacturing, construction, and business services.
“These are job-rich sectors of the economy,” she said. “Together with growth in exports of 3.3% and increased investment in residential buildings, plant and machinery, and transport equipment, this augurs well for future job prospects as well as higher incomes.”
“It is also pleasing to see that gross domestic product (GDP) per capita rose 0.9% in the three months to September.”
Labour’s finance spokesperson Barbara Edmonds claims the economy is smaller now than when National took office.
“Christopher Luxon promised growth. Instead, under his watch the economy has shrunk over the last year – and it hasn’t grown at all since he became Prime Minister.”
“Today’s data confirms what people are already feeling: Christopher Luxon is making things worse, not better. Christopher Luxon has no idea what life is like for most New Zealanders, so, when he stands up and says, ‘The economy is turning a corner,’ let’s be clear about what he really means: the economy is working for a few – not for the rest of New Zealand.”