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New Zealand’s economy expanded by 0.8% quarter-on-quarter in the first quarter of 2025, accelerating from 0.5% growth in the previous period and slightly beating market expectations of 0.7%. This marked the second consecutive quarter of growth following two quarters of contraction. Economic activity increased across all three major industry groups, with the strongest gains seen in manufacturing (+2.4% vs. +0.1% in Q4), followed by professional, scientific, technical, administrative, and support services (+2.4% vs. -0.1%), and agriculture, forestry, and fishing (+0.8%, unchanged). Construction rebounded with a 0.5% gain after a 3.6% drop in the previous quarter, while mining also returned to growth at +1% following a -1% decline. However, some sectors posted declines, including arts and recreation services (-1.9% vs. +1.3%) and information, media, and telecommunications (-0.8% vs. -2.9%). On an annual basis, GDP contracted by 0.7% in Q1, following a 1.3% decline in Q4.