New Zealand’s economy beating forecast, says finance minister

[WELLINGTON] New Zealand’s economy is tracking better than a forecast made by the Treasury in December, Finance Minister Nicola Willis said on Monday (Mar 9).

She said the Treasury’s preliminary economic and fiscal forecasts for the government’s 2026 Budget were “very positive and largely favourable, compared with the half-year update”.

“Latest estimates suggested the economy grew 1.7 per cent in the last (calendar) year, and when the preliminary forecasts were finalised, the Treasury was expecting a growth of 3 per cent for each of the next two financial years,” she said.

In the third quarter of 2025, the economy grew 1.3 per cent year on year. The Treasury forecast economic growth of 1.7 per cent in FY2026 ending in Jun 30 and 3.4 per cent in FY2027.

She added the positive forecasts were due to a combination of low interest rates, historically high export prices and a recovery in tourism, as well as elevated business and consumer confidence. REUTERS