GDP showed good growth before Iran war, new data shows

Author: Liam Dann,
Publish Date: Thu, 18 Jun 2026, 10:53am

New Zealand’s gross domestic product (GDP) rose 0.8% in the March 2026 quarter, after a 0.5% increase in the December 2025 quarter, according to figures released by Stats NZ today.

Manufacturing was the big driver of growth, but the construction industry slump curbed the overall lift.

Economists had been expecting the quarterly growth figure to land between 0.7% and 1%.

Annual GDP growth was also 0.8%, general manager and macroeconomic spokesman Jason Attewell said.

Nine out of 16 industries recorded an increase in economic activity in the March 2026 quarter.

Manufacturing was the largest upward contributor to the overall increase, up 1.9% in the quarter.

The rise in manufacturing activity was led by a 4.0% increase in transportation equipment, machinery and equipment manufacturing, and a 1.7% rise in food, beverage and tobacco manufacturing.

Business services (up 1.1%) and wholesale trade (up 2.4%) also contributed to the increase in GDP in the March 2026 quarter.

The increase in business services was driven by a 1.4% rise in professional, scientific and technical services, while the rise in wholesale trade was led by an increase in machinery and equipment wholesaling.

Mining was the largest downward contributor to GDP in the March 2026 quarter, down 11.6%. This was driven primarily by a decrease in oil and gas extraction.

“Construction was down 1.0% in the March 2026 quarter,” Attewell said.

“Declines in both residential and non-residential building contributed to the overall fall in construction activity in this period.”

Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.