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New Zealand Economy Posts Solid Q1 Growth Amid Revisions, Westpac Says

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New Zealand's economy grew 0.8% in the March quarter, with upward revisions to prior data strengthening the overall outlook despite a slightly softer quarterly reading than expected, according to a Thursday report by Westpac Banking (ASX:WBC, NZE:WBC).

Westpac said the gain was driven by broad-based sector strength, with manufacturing, wholesale and retail trade, and professional services all posting solid increases, broadly in line with its expectations.

The bank noted revisions were a key feature of the release, with December 2025 quarter gross domestic product (GDP) lifted to 0.5% from 0.2% on updated construction and agricultural data, while changes to seasonal adjustment factors reduced the usual March-quarter uplift.

The bank said annual GDP growth came in at 1.5%, above its 1.2% forecast, with the upside largely reflecting statistical revisions rather than a meaningful improvement in economic momentum.

The bank added that the result was broadly in line with Reserve Bank of New Zealand expectations, but the focus is likely to shift to recent developments, including fuel price swings, lower oil prices, and uncertainty over the durability of the peace agreement.

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