New Zealand’s economy expanded 0.8% in the March quarter, delivering a second straight quarter of growth and showing the economy’s productive sectors can perform even as global headwinds, including conflict in the Middle East, mounted in the back half of the quarter.
The figures, released by Stats NZ, build on a 0.5% rise in the December 2025 quarter, with annual GDP growth holding at 0.8%, a result that underscores the resilience of the export and manufacturing base when those sectors are allowed to do what they do best.
Stats NZ macroeconomic spokesperson Jason Attewell said the expansion was broad-based, with nine of sixteen industries growing over the quarter.
Manufacturing was the standout, rising 1.9% and once again proving itself the backbone of New Zealand’s output. Attewell noted manufacturing makes up around 8.0% of GDP.
The manufacturing gain was driven by a strong 4.0% jump in transportation equipment, machinery, and equipment manufacturing, plus a solid 1.7% rise in food, beverage, and tobacco manufacturing, both areas where Kiwi exporters continue to find demand offshore. Business services rose 1.1% and wholesale trade jumped 2.4%, further evidence that private enterprise, not state intervention, is doing the heavy lifting in this recovery.
The weak spots told a different story. Mining fell sharply, down 11.6%, driven mainly by a decline in oil and gas extraction, a sector that has faced years of restrictive policy settings and investment uncertainty. Construction also slipped 1.0%, with Attewell pointing to declines in both residential and non-residential building.
Stats NZ was careful to note that the March quarter GDP figures “were not heavily impacted by the Middle East conflict and late-quarter fuel price increases”, since GDP is measured in volume terms with price changes stripped out. “Therefore, price changes on their own will not impact GDP,” the agency said.
Officials cautioned they are watching closely to ensure their measurement methods stay accurate “for future releases,” noting that ongoing Middle East tensions and elevated fuel prices could weigh more heavily on specific parts of the economy in the quarters ahead — a reminder that maintaining a competitive, low-friction environment for exporters and producers will matter even more if global conditions worsen.