NZ 2Q GDP tumble sparks 3Q rebound talk, more easing eyed

Prime Minister Christopher Luxon shrugged off the dire 2Q GDP. (Image: NZME)

Mon, 22 Sep 2025

The New Zealand economy looks to be in dire shape, contracting 0.9% in the June quarter, but has it touched bottom?Most economists agree the economy is likely to bounce in the September quarter, but some of that will be statistical, given the tumble in the June quarter. They have mixed views on whether or not things are actually improving. “I’ve pencilled in a 1% number for Q3, which is partly underpinned by statistical noise. The Q2 shocker in part drives recoil in Q3,” Cameron Bagrie, managing director of Bagrie Economi...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Primary Sector

Dawn deal puts Alliance in dividend-paying position

That would be a number of years away, likely.

Riley Kennedy 5:00am

Sustainable Finance

The United States' anti-sustainability drive is here to stay

Many US investors are keeping their heads down without ditching ESG principles.

Greg Hurrell 5:00am

The United States' anti-sustainability drive is here to stay

Policy

Auditor general's fast track warning

Review found the fast track process was tighter than current Cabinet Manual rules.

Michael Neilson 5:00am

Sponsored

AI agents: opportunity or graveyard? Spark’s five-point playbook for success

Artificial intelligence agents – autonomous digital entities that analyse data, automate decisions, and act independently – are set to drive a new wave of business transformation.

Spark Enterprise

Sponsored

Future leaders start by Dreaming Big

How OnBeingBold empowers Year 13 girls at free leadership events.

OnBeingBold

More Economy

Economy

Willis teases new RBNZ governor after GDP drop

Finance Minister Nicola Willis says a new Reserve Bank of New Zealand governor will be announced “very shortly” as she comes under growing pressure to tackle NZ’s economic woes.Economists are calling on the RBNZ to cut the official cash rate (OCR) more aggressively after yesterda...

Staff reporters 19 Sep 2025