The economy of New Zealand advanced 0.8% quarter-on-quarter in Q1 2026, accelerating from an upwardly revised 0.5% growth in Q4 2025 but falling slightly short of forecasts of 0.9%. GDP growth was mainly driven by service industries, which rose 0.5%, supported by wholesale trade (2.4%), retail trade and accommodation (1.2%), professional, scientific, technical, administrative, and support services (1.1%), and transport, postal, and warehousing services (1.0%). Meanwhile, goods-producing industries grew 0.4%, due to higher activity in the manufacturing sector (1.9%). In contrast, primary industries contracted 0.5%, weighed down by mining activities (-11.6%). On the expenditure side, private consumption and gross fixed capital formation each grew 0.8%, while government spending expanded by 0.4%. Meanwhile, exports and imports rose 4.3% and 4.6%, respectively. Year-on-year, GDP expanded 1.5%, matching the revised figure in Q4 and surpassing market estimates of 1.1% growth.