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In the second quarter of 2025, New Zealand's economy shrank by 0.6% compared to the same period the previous year, matching the 0.6% decrease recorded in the first quarter and contrary to projections of stagnant growth. This downturn was largely attributed to a notable 4.7% contraction in goods-producing sectors, which had previously decreased by 2.8%. Within these sectors, the construction industry experienced a significant decline of 7.6%, slightly improved from an 8% decrease, and the manufacturing sector fell by 3.2% following a previous rise of 2%. Conversely, the service sector demonstrated resilience with a growth of 0.5%, an improvement over the 0.1% increase noted in the first quarter. The primary sector saw a modest increase of 0.1%, down from a 0.5% growth rate earlier. On a quarterly scale, the country's GDP dropped by 0.9%, overturning the 0.9% growth achieved in the first quarter.
