NZ economy grows 1.1% in Q3 as broad-based rebound boosts confidence

The figures, released by Stats NZ, show that growth was broad-based, with 14 of 16 measured sectors expanding—one of the strongest indicators of balanced economic health in recent years.

Finance Minister Nicola Willis has welcomed confirmation that New Zealand's economy grew 1.1% in the third quarter of the year, calling the results a promising sign ahead of Christmas and a clear indication that the country is moving into a stronger economic phase.

The figures, released by Stats NZ, show that growth was broad-based, with 14 of 16 measured sectors expanding—one of the strongest indicators of balanced economic health in recent years.

Broad-Based Rebound Across Key Industries

Willis highlighted several sectors that saw particularly robust growth:

• Manufacturing: up 2.2%

• Construction: up 1.7%

• Business services: up 1.6%

"These are job-rich sectors of the economy," she said, noting that their expansion supports improved job prospects and future income growth. Stronger performance in these areas also reflects rising demand, renewed investment, and greater confidence among both businesses and consumers.

Exports and Investment Strengthen Outlook

Exports surged by 3.3%, contributing significantly to the quarter's overall growth. At the same time, investment increased across residential buildings, plant and machinery, and transport equipment—signs of renewed economic momentum and business confidence.

Willis said these trends "augur well for future job prospects as well as higher incomes" as the country heads into the new year.

GDP Per Capita Also on the Rise

In addition to overall GDP growth, GDP per capita rose 0.9% in the three months to September. This is a key indicator of improving living standards, following a challenging period marked by inflationary pressures and slow output growth.

Signs of Stronger Growth Ahead

Both Treasury and the Reserve Bank are forecasting continued economic improvement in the months ahead, including:

• Accelerating GDP growth in 2026

• Falling unemployment

Willis said the latest results confirm that the Government's strategy to "fix the basics and build the future" is beginning to deliver measurable gains.

"With all the indicators pointing to further growth in the final quarter of the year, Kiwis can go into Christmas confident the economy has finally turned the corner after a tough few years," she said.

The Government maintains that structural reforms, investment incentives, and rebuilding confidence across key industries are central to sustaining the recovery into next year and beyond.