NZ Economy: Wheels Turning

The BusinessNZ Planning Forecast for the March quarter shows signs of economic improvement - even as New Zealand continues to face significant issues at home and abroad.

BusinessNZ Director of Advocacy Catherine Beard says New Zealand is not immune to the economic uncertainty rising around the world.

"As trade wars continue between the United States and other nations, the world remains in a state of economic flux. As a trading nation, New Zealand cannot expect to come out of these renegotiations unscathed.

"On the bright side, inflationary pressures continue to fall, and recent cuts to the official cash rate have taken some financial pressure off homeowners refixing their mortgage. World commodity prices are solid which is welcome news for our meat and dairy exporters."

"For the first time in almost two years, the manufacturing sector saw growth in 2025 - this is welcome news and a positive sign of recovery."

The BusinessNZ Economic Conditions Index (ECI) is a measure of NZ’s major economic indicators. It sits at 17 for the March 2025 quarter, an improvement of 7 on the previous quarter, and an improvement of 14 on a year ago.

An ECI reading above 0 indicates that economic conditions are generally improving overall; below 0 means economic conditions are generally declining.

The full BusinessNZ Planning Forecast for the March quarter can be found on the BusinessNZ Website:  https://businessnz.org.nz/resources_category/reports-publications/

© Scoop Media