By Lucy Craymer WELLINGTON (Reuters) -New Zealand’s economy grew in the fourth quarter, signaling an improving outlook after it sank into a recession in the middle of 2024, though global trade tensions may still pose a risk for the year ahead. Official data out on Thursday showed gross domestic product (GDP) rose 0.7% in the […]
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New Zealand’s economy grows in fourth quarter, emerges from recession
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By Lucy Craymer
WELLINGTON (Reuters) -New Zealand’s economy grew in the fourth quarter, signaling an improving outlook after it sank into a recession in the middle of 2024, though global trade tensions may still pose a risk for the year ahead.
Official data out on Thursday showed gross domestic product (GDP) rose 0.7% in the December quarter from the prior quarter, better than analysts’ forecasts of a 0.4% increase. The Reserve Bank of New Zealand had forecast the economy to grow by 0.3%.It followed a revised 1.1% contraction in the third quarter.
Annual GDP decreased 1.1%, Statistics New Zealand data showed. The market had expected a fall of 1.4%.
“Higher spending by international visitors led to increased activity in tourism-related industries such as accommodation, restaurants and bars, transport, and vehicle hiring,” Statistics New Zealand economic growth spokesperson Katrina Dewbery said.
The improvement in growth will provide some welcome relief to policymakers keen to put the economy back on a solid footing after it sank into a technical recession in the September quarter. The two-quarter GDP decline was the worst outside of the pandemic since the sharp downturn of 1991.
Statistics New Zealand said eleven of the 16 industries increased this quarter and the largest rises were from rental, hiring, and real estate services; retail trade and accommodation; and healthcare and social assistance.
(Reporting by Lucy CraymerEditing by Alasdair Pal)