Principal Consultant Rob Heyes explores how New Zealand stands out globally for generating more than 80% of its electricity from renewable sources, primarily hydro and geothermal, with wind and solar generation continuing to grow. Our strong renewable base reflects natural advantages while also highlighting the ongoing challenge of balancing energy security, affordability, and sustainability - the core of the energy trilemma.
Energy is fundamental to economic growth and living standards. Here we look at how well New Zealand’s energy sector has been able to balance security, equity and sustainability, and the challenges it will face balancing them in the future.
New Zealand’s rarest stamp, the upside-down Lake Taupō, has changed hands again, but its modest long-term return highlights how investment performance can vary widely. As our Chart of the Month shows, some assets have delivered far stronger growth over the same period, even after accounting for inflation.
Infometrics’ latest forecasts show the Reserve Bank walking a fine line between reviving growth and overstimulating the economy. With the OCR set to drop next month, growth is expected to strengthen through 2026 and into 2027, driven by exports, infrastructure investment, and stronger household demand. But with momentum building, rate hikes may return from late 2026 to keep inflation in check.
Stats NZ subnational population estimates for 2025 will be released on 29th October. This update will be incorporated in the Regional Economic Profile in the days following. The 2025 estimates will feed into the Population Projections update, to be published by mid-December.
