Big banks revise economic outlooks for GDP contraction in Q2

Economists see technical recession in Q3 unlikely. (Image: Getty)

Mon, 15 Sep 2025

Economists have sharpened their forecasts for the June-quarter gross domestic product on the back of the latest data and now expect the New Zealand economy to contract marginally.ANZ and Westpac economists are predicting the NZ economy to shrink 0.4% in the three months to the end of June 2025, while those at ASB were looking for a 0.3% tightening. All had recently revised their forecasts down to be more in keeping with the Reserve Bank of NZ’s (RBNZ) expectations for a 0.3% contraction in the quarter.More recent data suggest NZ migh...

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