New Zealand's economy shows resilience, forecasts growth

BusinessNZ's chief economist, John Pask, highlighted that despite earlier challenges, the economy has fared better than expected, with annual growth nearing 3% by 2028.

Pask acknowledged the impact of the ongoing conflict in the Middle East and heightened geopolitical tensions, but said that it has not materially affected investment behaviour.

He noted that while uncertainty surrounding the upcoming general election has made investors more cautious, businesses are still getting on with their operations.

Sectoral performance is also improving, with agriculture being the standout performer, supported by strong international commodity prices.

Manufacturing, construction, tourism, and services are also showing signs of recovery.

However, Pask emphasised the need for NZ to address deeper structural and long-term challenges in order to sustain growth.

The BusinessNZ Economic Conditions Index, which measures key economic indicators, indicated that economic conditions are generally improving.

* This story was written by AI with oversight from an editor.