The recovery is real, but inflation is keeping policy restrictive
Statistics New Zealand reported that GDP rose 0.8% in the March 2026 quarter, while annual CPI inflation reached 4.1% in the June quarter. The combination points to an economy moving out of stagnation, but with price pressure still materially above the Reserve Bank’s 1–3% target band.
FalconBridge Lens
For clients assessing New Zealand entry or expansion, the relevant question is not simply whether growth has returned; it is whether margins, wages and imported costs can absorb a longer period of restrictive monetary conditions.
Sources: Stats NZ — GDP; Stats NZ — CPI; RBNZ.
