New Zealand’s economy has entered the early stages of a cyclical recovery, supported by easing monetary policy, resilient exports and a rebound in tourism. However, the outlook has become more uncertain. A renewed global energy shock linked to conflict in the Middle East is weighing on confidence, slowing the recovery and putting renewed upward pressure on inflation, underscoring the importance of keeping inflation expectations firmly anchored.
Sustaining growth will require continued progress on a small number of high‑impact structural priorities. Strengthening the affordability, security and sustainability of the electricity system, and accelerating electrification, will support competitiveness, investment and resilience to foreign energy shocks. Scaling up digital and AI‑enabled tools in the health system can help moderate ageing‑related spending and workforce pressures by improving productivity and service delivery. Deepening capital markets, including by mobilising household savings and improving access to equity and long‑term finance, will support firm growth, economic diversification and productivity.
SPECIAL FEATURES: ELECTRICITY, DIGITALISATION AND AI IN HEALTH, CAPITAL MARKETS
