NZIER Consensus Forecasts suggest a gradual recovery in the New Zealand economy over the coming year

The latest NZIER Consensus Forecasts show a downward revision to the near-term growth outlook relative to the previous release of Consensus Forecasts. Annual average growth in GDP is forecast to contract by 1.1 percent in the year to March 2025 before picking up to 1.9 percent in the following year. Following the contraction in the June and September quarters of 2024, recovery in the New Zealand economy has been fragile. Expectations are for the recovery in activity to continue at a gradual pace over the coming year. Over the longer term, lower interest rates are expected to support a pick-up in growth.