New Zealand GDP Rises 0.2% in Q4, Missing Forecasts

New Zealand's economy expanded by a modest 0.2 percent in the fourth quarter of last year, missing economists' expectations and reinforcing the central bank's decision to maintain interest rates at a steady level amid signs of a fragile recovery.

Statistics New Zealand released the data on Thursday, showing gross domestic product rose 0.2 percent from the previous quarter, below the 0.4 percent forecast by analysts and the Reserve Bank of New Zealand's projection of 0.5 percent. On an annual basis, GDP increased 1.3 percent, falling short of the anticipated 1.7 percent gain. The third quarter's growth was revised downward to 0.9 percent from an initial 1.1 percent estimate, with its annual figure adjusted to 1.1 percent.

The figures indicate early stabilization after a prolonged stretch of subdued activity, though significant spare capacity persists in the economy. The Reserve Bank, which has reduced the official cash rate by 325 basis points since August 2024 to stimulate growth, held it at 2.25 percent in February. Officials described the recovery as being in its initial phases, with broadening activity across sectors. This latest data, which covers the period before the...