NZIER Consensus Forecasts point to a weaker near-term growth outlook

 The latest NZIER Consensus Forecasts show a downward revision to the near-term growth outlook for the New Zealand economy. Annual GDP for the year ending March 2026 is forecast to increase by 0.9 percent, before growth is forecast to pick up to 2.8 percent in the following year. The downward revision in the near-term growth outlook reflects the lower starting point of a 0.9 percent contraction in activity in the June quarter. The continued reported weak demand in the NZIER Quarterly Survey of Business Opinion is also weighing on expectations of near-term growth. Beyond 2026, a continued recovery in activity is expected as the effects of lower interest rates continue to pass through the broader economy.