Our economic snapshot summarises important economic statistics for the December 2025 quarter.
It uses statistics drawn from key Stats NZ datasets to provide insights into New Zealand's overall economic performance.
Data sources has more information about the statistics used in this snapshot.
The economy grew in the December 2025 quarter
- New Zealand's gross domestic product (GDP) rose 0.2 percent in the December 2025 quarter. This followed a 0.9 percent increase in the September 2025 quarter.
- Rental, hiring, and real estate services was the biggest contributor to the quarterly increase in GDP, up 0.8 percent.
- GDP rose 0.2 percent in the year ended December 2025, compared with the year ended December 2024. This is the first time since the year ended September 2024 that the economy has recorded annual growth.
"Spending by overseas visitors to New Zealand increased in the December 2025 quarter, and this flowed through to parts of the economy that service tourism, such as rental car hire, retail trade, and accommodation," general manager and macroeconomic spokesperson Jason Attewell said.
| Quarter | Quarterly growth (%) |
| Jun-22 | 1 |
| Sept-22 | 1.9 |
| Dec-22 | 0.2 |
| Mar-23 | 0 |
| Jun-23 | 0.9 |
| Sept-23 | 0.1 |
| Dec-23 | 0.5 |
| Mar-24 | 0.2 |
| Jun-24 | -0.6 |
| Sept-24 | -1.2 |
| Dec-24 | 0 |
| Mar-25 | 1.1 |
| Jun-25 | -0.9 |
| Sept-25 | 0.9 |
| Dec-25 | 0.2 |
| Quarter | Annual growth (%) |
| Jun-22 | 0.5 |
| Sept-22 | 2.4 |
| Dec-22 | 2.6 |
| Mar-23 | 3.3 |
| Jun-23 | 4 |
| Sept-23 | 2.6 |
| Dec-23 | 2.2 |
| Mar-24 | 1.8 |
| Jun-24 | 1.1 |
| Sept-24 | 0.5 |
| Dec-24 | -0.3 |
| Mar-25 | -0.9 |
| Jun-25 | -1.1 |
| Sept-25 | -0.6 |
| Dec-25 | 0.2 |
Construction activity down, new home consents up
- Construction was down 1.4 percent in the December 2025 quarter, as measured in GDP. This was the largest downward contributor to GDP this quarter. On an annual basis, construction was down 6.2 percent in the year ended December 2025, compared with the year ended December 2024.
- Volume of building work put in place fell 3.1 percent in the December 2025 quarter, compared with the September 2025 quarter, after removing the effects of price changes and typical seasonal patterns. Residential building work was down 1.1 percent, and non-residential building work was down 6.5 percent.
- The number of new homes consented rose 5.5 percent in the December 2025 quarter, compared with the September 2025 quarter, after removing seasonal effects. There were 36,619 new homes consented in the year ended December 2025, up 9.0 percent compared with the year ended December 2024.
"Building consents data is an indicator of future construction, so the increase in new homes consented in the December 2025 quarter is likely to flow through to building activity in later quarters," Attewell said.
Building New Zealand: Focus on the construction industry has more information on the recent performance of New Zealand's construction industry.
Unemployment rate at 5.4 percent
- The seasonally adjusted employment rate was 66.7 percent in the December 2025 quarter, compared with 66.6 percent in the September 2025 quarter.
- The seasonally adjusted labour force participation rate was 70.5 percent in the December 2025 quarter, compared with 70.3 percent in the previous quarter.
- New Zealand's unemployment rate was at 5.4 percent in the December 2025 quarter, compared with 5.3 percent in the September 2025 quarter and 5.2 percent in the June 2025 quarter.
"Both employment and unemployment rose in the December 2025 quarter," Attewell said. "This was due to an overall increase in the number of people participating in the labour market."
| Quarter | Unemployment rate |
| Dec-10 | 6.2 |
| Mar-11 | 6 |
| Jun-11 | 6.1 |
| Sep-11 | 6 |
| Dec-11 | 6.1 |
| Mar-12 | 6.4 |
| Jun-12 | 6.4 |
| Sep-12 | 6.7 |
| Dec-12 | 6.3 |
| Mar-13 | 5.8 |
| Jun-13 | 6 |
| Sep-13 | 5.8 |
| Dec-13 | 5.7 |
| Mar-14 | 5.6 |
| Jun-14 | 5.3 |
| Sep-14 | 5.3 |
| Dec-14 | 5.5 |
| Mar-15 | 5.5 |
| Jun-15 | 5.5 |
| Sep-15 | 5.7 |
| Dec-15 | 5 |
| Mar-16 | 5.3 |
| Jun-16 | 5.1 |
| Sep-16 | 5 |
| Dec-16 | 5.3 |
| Mar-17 | 4.9 |
| Jun-17 | 4.9 |
| Sep-17 | 4.7 |
| Dec-17 | 4.5 |
| Mar-18 | 4.4 |
| Jun-18 | 4.6 |
| Sep-18 | 4 |
| Dec-18 | 4.3 |
| Mar-19 | 4.2 |
| Jun-19 | 4.1 |
| Sep-19 | 4.1 |
| Dec-19 | 4.1 |
| Mar-20 | 4.2 |
| Jun-20 | 4.1 |
| Sep-20 | 5.2 |
| Dec-20 | 4.9 |
| Mar-21 | 4.6 |
| Jun-21 | 4 |
| Sep-21 | 3.3 |
| Dec-21 | 3.2 |
| Mar-22 | 3.3 |
| Jun-22 | 3.3 |
| Sep-22 | 3.3 |
| Dec-22 | 3.4 |
| Mar-23 | 3.5 |
| Jun-23 | 3.7 |
| Sep-23 | 4 |
| Dec-23 | 4 |
| Mar-24 | 4.4 |
| Jun-24 | 4.7 |
| Sep-24 | 4.9 |
| Dec-24 | 5.1 |
| Mar-25 | 5.1 |
| Jun-25 | 5.2 |
| Sep-25 | 5.3 |
| Dec-25 | 5.4 |
Consumer inflation increased, driven by higher household-related costs
- The consumers price index (CPI) increased 3.1 percent in the 12 months to the December 2025 quarter. This followed a 3.0 percent increase in the 12 months to the September 2025 quarter.
- Like last quarter, the largest contributors to the annual inflation rate were electricity (up 12.2 percent), local authority rates and payments (up 8.8 percent), and rent (up 1.9 percent). Together, these items make up around 17 percent of the weight of the CPI basket.
- Food prices, as measured by the consumers price index, rose 4.3 percent in the 12 months to the December 2025 quarter.
| Quarter | Percentage change |
| Dec-05 | 3.2 |
| Mar-06 | 3.3 |
| Jun-06 | 4 |
| Sept-06 | 3.5 |
| Dec-06 | 2.6 |
| Mar-07 | 2.5 |
| Jun-07 | 2 |
| Sept-07 | 1.8 |
| Dec-07 | 3.2 |
| Mar-08 | 3.4 |
| Jun-08 | 4 |
| Sept-08 | 5.1 |
| Dec-08 | 3.4 |
| Mar-09 | 3 |
| Jun-09 | 1.9 |
| Sept-09 | 1.7 |
| Dec-09 | 2 |
| Mar-10 | 2 |
| Jun-10 | 1.7 |
| Sept-10 | 1.5 |
| Dec-10 | 4 |
| Mar-11 | 4.5 |
| Jun-11 | 5.3 |
| Sept-11 | 4.6 |
| Dec-11 | 1.8 |
| Mar-12 | 1.6 |
| Jun-12 | 1 |
| Sept-12 | 0.8 |
| Dec-12 | 0.9 |
| Mar-13 | 0.9 |
| Jun-13 | 0.7 |
| Sept-13 | 1.4 |
| Dec-13 | 1.6 |
| Mar-14 | 1.5 |
| Jun-14 | 1.6 |
| Sept-14 | 1 |
| Dec-14 | 0.8 |
| Mar-15 | 0.3 |
| Jun-15 | 0.4 |
| Sept-15 | 0.4 |
| Dec-15 | 0.1 |
| Mar-16 | 0.4 |
| Jun-16 | 0.4 |
| Sept-16 | 0.4 |
| Dec-16 | 1.3 |
| Mar-17 | 2.2 |
| Jun-17 | 1.7 |
| Sept-17 | 1.9 |
| Dec-17 | 1.6 |
| Mar-18 | 1.1 |
| Jun-18 | 1.5 |
| Sept-18 | 1.9 |
| Dec-18 | 1.9 |
| Mar-19 | 1.5 |
| Jun-19 | 1.7 |
| Sept-19 | 1.5 |
| Dec-19 | 1.9 |
| Mar-20 | 2.5 |
| Jun-20 | 1.5 |
| Sept-20 | 1.4 |
| Dec-20 | 1.4 |
| Mar-21 | 1.5 |
| Jun-21 | 3.3 |
| Sept-21 | 4.9 |
| Dec-21 | 5.9 |
| Mar-22 | 6.9 |
| Jun-22 | 7.3 |
| Sept-22 | 7.2 |
| Dec-22 | 7.2 |
| Mar-23 | 6.7 |
| Jun-23 | 6 |
| Sept-23 | 5.6 |
| Dec-23 | 4.7 |
| Mar-24 | 4 |
| Jun-24 | 3.3 |
| Sept-24 | 2.2 |
| Dec-24 | 2.2 |
| Mar-25 | 2.5 |
| Jun-25 | 2.7 |
| Sept-25 | 3 |
| Dec-25 | 3.1 |
Retail sales rise
- The total volume of seasonally adjusted retail sales was $26 billion in the December 2025 quarter, up 0.9 percent compared with the September 2025 quarter.
- The total value of seasonally adjusted retail sales was $32 billion in the December 2025 quarter, up 1.4 percent compared with the previous quarter.
- Twelve of the 16 regions had higher seasonally adjusted retail sales values in the December 2025 quarter compared with the September 2025 quarter. Hawke's Bay (up 3.2 percent), Canterbury (up 3.1 percent), and Otago (up 2.6 percent) recorded the largest percentage increases in retail sales in the December 2025 quarter, relative to the previous quarter.
"Spending on discretionary items such as electrical and electronic goods, and hardware, building, and garden supplies contributed to the overall increase in retail activity in the December 2025 quarter," Attewell said.
Current account deficit widened
- The current account deficit was $4.6 billion in the December 2025 quarter, compared with $3.8 billion in the September 2025 quarter. This was due mainly to the widening of the primary income deficit (by $664 million) and the goods deficit (by $321 million).
- The primary income deficit is the difference between the income New Zealand earns from its investments overseas and the outflow of income from foreign investment in New Zealand.
- The services balance recorded a surplus of $122 million in the December 2025 quarter. The increase in spending by overseas visitors to New Zealand contributed to the services balance surplus.
- Annually, the current account deficit was $16.3 billion (3.7 percent of GDP) in the year ended 31 December 2025, compared with a $15.4 billion deficit in the year ended 30 September 2025 (3.5 percent of GDP).
- International trade data showed that total exports of goods and services for the December 2025 quarter were $29.2 billion, up 8.4 percent compared with the December 2024 quarter. Total imports of goods and services were $32.0 billion, up 8.9 percent over the same period.
Data sources
Balance of payments and international investment position: December 2025 quarter has more information on New Zealand's balance of payments and international investment position.
Building consents issued: December 2025 has more information about the number, floor area, and value of new homes, non-residential buildings, and alterations approved for construction.
Building New Zealand: Focus on the construction industry has more information on the recent performance of New Zealand's construction industry.
Consumers price index: December 2025 quarter has more information on consumer inflation.
Gross domestic product: December 2025 quarter has more information on the performance of New Zealand's economy.
International trade: December 2025 quarter has more information on imports and exports of goods and services between New Zealand and our trading partners.
Labour market statistics: December 2025 quarter has more information on unemployment, employment rates, demand for labour, and changes in wages and salaries.
Retail trade survey: December 2025 quarter has more information on the sales and stock of businesses that provide household and personal goods and services.
Value of building work put in place: December 2025 quarter has more information on the value and volume of work put in place on construction jobs in New Zealand.
