Economy suffers setback

New Zealand’s gross domestic product (GDP) decreased by 0.9 per cent in the June quarter, the third fall in the past five quarters.

The shift reverses a 0.9 per cent increase in the first three months of this year, according to the latest figures from Stats NZ.

Activity decreased in the June 2025 quarter across two out of three high-level industry groups, with goods-producing industries down 2.3 per cent, primary industries fell 0.7 per cent and service industries were flat.

Jason Attewell,  economic growth spokesperson, says: “The 0.9 per cent fall in economic activity in the June 2025 quarter was broad-based with falls in 10 out of 16 industries,”

Manufacturing was the largest contributor to the overall decrease in GDP, down 3.5 per cent in the quarter, and construction was down 1.8 per cent.

GDP per capita fell by 1.1 per cent in the June quarter from the March quarter and real gross national disposable income increased by 0.9 per cent. 

Imports of goods and services nudged up 0.6 per cent over the same time frame – a rise in imports results in a downwards contribution to expenditure on GDP.

However, the seasonally adjusted value of motor cars imported in the June 2025 quarter was $1.15 billion, down two per cent from $1.17b in the previous quarter.

The drop comes after increases of 4.2 per cent in the December 2024 quarter and 7.8 per cent in the first three months of this year.