Fortnightly Economic Update – 4 December 2025
The Reserve Bank cut the OCR, providing a boost to households and businesses, while retail spending and construction activity suggest early signs of broader recovery. Despite these positives, services remain subdued, house prices are soft, and weak dairy prices are weighing on rural incomes.
Global growth is expected to slow in 2026, and uncertainty around trade and policy continues to temper sentiment. This update highlights the mixed forces shaping the economy and what they may mean as the year draws to a close.
Fortnightly Economic Update – 19 December 2025
Economic growth remains strong across most sectors as global tensions ease and central banks adjust interest rates lower. Food prices and rent pressures have eased, while house prices stay flat. Despite these positive signs, key risks continue to linger in the economy, particularly concerning global investment in AI and its potential disruptions.
Globally, central banks are moving towards more neutral policy stances, balancing inflation control with potential risks from slowing labour markets. With AI investment booming, New Zealand faces both opportunities and challenges as it adapts to a rapidly changing global economy. This update explores the key economic trends and risks as 2025 concludes.
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