New Zealand’s economy is on a gradual recovery path, buoyed by strong institutions, resilient banking, booming ag exports, and rebounding tourism—projected to grow 1.6% in 2026 and 2.3% in 2027. But challenges loom: soaring living costs, strained budgets, and urgent infrastructure needs create uneven growth. Globally, geopolitical risks threaten stability, yet dairy and kiwifruit exports remain steady. A new frontier? Data centers could supercharge the economy—but demand for power will skyrocket, forcing massive grid investments. Meanwhile, property rate caps squeeze local councils already battling inflation and rising wages, making it harder to fund essential services without stifling growth.
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