Our take on the latest Gross domestic product (Thu 19 Sept 2019)
NZ economy grew 2.1%pa in June 2019
Services exports fell 0.1%pa over the year to June 2019
Infrastructure and business investment continue to fall
The key numbers...
- New Zealand’s economic growth continued to soften in June, with GDP expanding only 2.1% from a year earlier, in line with market and Reserve Bank expectations.
- Services exports fell 0.1%pa over the year to June 2019, the first drop since 2013, as tourism and international education spending have begun to decline.
- Spending on infrastructure construction fell by 11%pa in the June quarter, while transport equipment purchases down 7.0%pa over the same period, and plant, machinery, and equipment spending softened further.
- Government spending has failed to pick up, with both investment and consumption showing moderate growth of 2.6%pa and 2.3%pa respectively.
- Private consumption growth slowed to 2.9%, slipping below 3%pa for the first time since 2014, following the two weakest consecutive quarters of growth since 2012.
National economic growth
Production based
...and our reaction
- New Zealand is now well into a long, slow, slowdown, with little stimulus on the horizon that will assist a pick-up in economic activity any time soon.
- Global factors are starting to bite, with the decline in service exports pointing towards less tourism spending.
- The lack of additional growth in government spending highlights a lack of follow-through by the government compared to its spending plans, and current government action isn’t enough given the mounting case for fiscal stimulus.
- Infrastructure spending remains in decline, with a lack of shovel-ready projects suggesting that this decline will reverse any time soon.
- Business investment is also still softening as uncertainty around international and domestic conditions continues to undermine confidence and activity.
- Consumer spending growth is slowing in line with expectations, as population growth eases and households become increasingly cautious about the future.
Latest updates
Premium
Gross domestic product
NZ economy picking up before fuel price spike
Thu 18 Jun 2026
Quarterly
0.8% GDP in Mar 2026 qtr (sa)2.5% Business investment from Dec 2025 qtr (sa)
0.5% Household spending from Dec 2025 qtr (sa)Premium
Gross domestic product
No momentum in recovery, even before Iran
Thu 19 Mar 2026
Quarterly
0.1% GDP from Sep 2025 qtr (sa)0.1% Household spending from Sep 2025 qtr (sa)3.2% Private investment from Sep 2025 qtr (sa)Gross domestic product
Economy bounces back 1.1% from June’s dip
Thu 18 Dec 2025
Quarterly
1.1% rise in GDP in September quarter from JuneInvestment spending up 3.2% from June 2025Manufacturing activity up 2.2% from June 2025Gross domestic product
Economy contracts 0.9% as international uncertainty bites
Thu 18 Sept 2025
Quarterly
0.9% fall in GDP in June quarterHousehold spending up 0.4% from Mar 2025Manufacturing activity declines 3.5% from Mar 2025