New Zealand’s economy is rebounding, led by the South Island’s booming agriculture, tourism, and exports—driving three percent growth by 2028 and keeping unemployment low. Meanwhile, the North Island lags, especially in Auckland and Wellington, with housing prices rising faster south of the divide. Tourism is officially recovered, hospitality benefits—but unevenly. Manufacturing and services are expanding, though businesses fret over costs and spending. Construction is turning around with more home consents, while inflation sticks due to fuel prices, prompting more rate hikes from the Reserve Bank. Confidence remains strong, credit flows up, but long-term hurdles like an aging population and global trade dynamics loom large.
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