FX.co ★ New Zealand's Economy Shows Signs of Recovery as GDP Decline Slows in Q1

The latest figures from New Zealand's statistics bureau indicate a marginal improvement in the country's economic performance, with the GDP shrinking by 0.7% in the first quarter of 2025 compared to the same period last year. This represents an amelioration from the previous quarter's decline of 1.1%, underscoring cautious optimism about the nation's economic trajectory.

Data updated as of June 18, 2025, highlights the economic struggles New Zealand faced during the past year, triggered by various domestic and international factors. However, the latest figures suggest that these hurdles may be beginning to ease, as indicated by the reduced contraction.

The year-over-year comparison reveals that while the economy is still contracting, the pace of decline has slowed, which could be a potential harbinger of stabilization or even recovery in the ensuing quarters. As policymakers and economists keep a vigilant eye on these trends, the slight uptick in GDP performance is offering a glimpse of hope amid ongoing economic challenges.