Economy
NZ & Australia — latest economy news and analysis
OpinionEconomy
NZBeyond the NZX50: Why Smaller, Regional NZ Businesses Might Be the Unsung Heroes of 2026
While global volatility drags down the main NZX50 index, New Zealand's regional economies are staging a quiet recovery. Driven by strong primary sector returns and resilient local SMEs, the provinces are proving to be the real engine of the country's economic survival in 2026.
Economy
NZWestpac Releases Downbeat June 2026 Consumer Update Highlighting Spending Slowdown and OCR Hikes
Westpac New Zealand's June 2026 Consumer Update shows household spending has slowed sharply, with per-person retail card spending down by 0.3% in May, prompting forecasts of three RBNZ OCR hikes to combat persistent inflation.
Economy
bothGlobal Economic Week Ahead: US Inflation and ECB Interest Rate Decisions in Focus
A crucial week lies ahead for global markets as May inflation figures in the US are forecast to rise to 4.2%, and the European Central Bank moves toward a 25 basis point rate hike.
Economy
AUAustralian GDP growth slows to 0.3% as high rates and weather disrupt activity
Australia's economic growth slowed sharply to 0.3% in the first quarter of 2026, missing market expectations. Extreme weather disruptions and weak consumer spending dragged on activity, posing a policy dilemma for the Reserve Bank of Australia.
OpinionEconomy
NZNZ Budget 2026: The Perils of Playing It Safe in a Stagnant Economy
New Zealand's Budget 2026 prioritises fiscal discipline and targeted relief, aiming for an earlier return to surplus. However, this cautious approach risks stalling broader economic growth at a time when businesses and workers need a real engine for recovery.
Economy
AUAustralia Records First Trade Deficit Since 2017 Amid Soaring Imports
Australia has recorded its first trade deficit in goods and services since December 2017, driven by a surge in data centre equipment imports and high fuel costs. The March quarter current account deficit widened to A$27.1 billion, setting up a drag on upcoming GDP growth figures.
Economy
AUAustralia's National Minimum Wage Rises 4.75% to Exceed A$1,000 Per Week
Australia's national minimum wage will rise by 4.75% from July 1, 2026, marking the first time the weekly rate has exceeded A$1,000.
Economy
AUAustralia's Unemployment Rate Climbs to 4.5% as Job Market Shows Softening Trend
Australia's unemployment rate climbed to 4.5% in April 2026, representing its highest level since late 2021. The softening of the job market has prompted expectations that the Reserve Bank of Australia will hold interest rates steady.
Economy
NZNew Zealand Exports Hit Record $8.6 Billion in April Driving Historic Trade Surplus
New Zealand exports climbed to a record $8.6 billion in April 2026, delivering a historic $1.9 billion trade surplus. Strong international demand for meat, gold, dairy, and crude oil offset rising global economic uncertainties.
Economy
NZNew Zealand Retail Spending Contracts as Electronic Card Transactions Fall 1.3 Percent
New Zealand retail spending via electronic cards dropped 1.3 percent in April 2026, as consumers cut back on consumables, hospitality, and fuel. The total value of electronic card transactions across all industries fell by $160 million.
Economy
NZMiddle East Conflict Impacts New Zealand Fuel Prices and Economic Outlook
New Zealand officials are monitoring fuel supplies as petrol prices rise 33.6% and diesel 94.9% following conflict in the Middle East. Global oil prices hit US$102.40 per barrel as supply chain risks grow.
Economy
AUAustralian Consumer Confidence Recovers Slightly, Remains Historically Low
Australian consumer confidence rose by 2.3 points to 66.4 for the week ending May 18, 2026. Despite the modest recovery, the index remains near historical lows, with only 13% of households considering it a good time to buy major items.
Economy
NZNew Zealand Population Growth Accelerates to 0.8% as Citizen Exodus Slows
New Zealand's population grew by 0.8% in the year to March 2026, reaching 5,361,300. The increase was driven by a net migration gain of 24,300 and a significant slowdown in the departure of New Zealand citizens.
Economy
NZNew Zealand Manufacturing Growth Stalls Amid Rising Supply Chain Costs
New Zealand's manufacturing sector slowed significantly in April 2026, with the PMI dropping to 50.5. Escalating costs linked to Middle East conflict are impacting supply chains and new orders.
Economy
AUAustralian Federal Budget 2026-27 Unveils Major Tax and Spending Package
The 2026-27 Australian Federal Budget introduces major reforms to negative gearing and capital gains tax while providing a new $250 tax offset for workers. Treasurer Jim Chalmers aims to address housing affordability and intergenerational equity through a $31.5 billion deficit plan.
Economy
AUAustralian Wage Growth Remains Steady as Annual Rate Moderates to 3.3 Per Cent
The Australian Wage Price Index rose by 0.8% in the March quarter 2026, bringing annual wage growth to 3.3%. This steady growth comes as the Reserve Bank of Australia maintains a high cash rate of 4.35% to combat persistent inflation.
Economy
NZNew Zealand Returns to Trade Surplus in March as Exports Hit Record High
New Zealand achieved a merchandise trade surplus of NZD 0.70 billion in March 2026, a significant turnaround from the previous year's deficit. Record exports of NZD 7.9 billion were driven by strong demand for precious metals and fruit.
Economy
NZOECD Urges Energy Reforms to Address Structurally High Electricity Prices
The OECD has identified structurally high electricity prices as a major barrier to New Zealand's economic growth, calling for urgent reforms to the energy market and firming capacity.
Economy
NZNew Zealand Unemployment Rate Falls to 5.3% in First Quarter
New Zealand's unemployment rate fell to 5.3% in the first quarter of 2026, outperforming economist expectations of 5.4%. While employment rose by 0.2%, the participation rate saw a slight decline to 70.4%.
Economy
NZKiwiSaver rate hike and fuel costs squeeze small business margins
New Zealand small businesses are facing a dual financial squeeze as KiwiSaver employer contributions rise to 3.5% alongside surging fuel costs. Recent data shows 17% of SMEs have less than a month of cash reserves, raising concerns about future hiring and wage growth.
Economy
AUAustralia Faces Tightening Cycle as Inflation Persists and GDP Growth Moderates
Australia's 2026 economic outlook remains cautious, with the IMF projecting 2.0% GDP growth and inflation hitting 4.0%. As the RBA prepares for further rate hikes, consumer sentiment has fallen to near-record lows.
Economy
NZNew Zealand Business Confidence Recedes as Energy Cost Shock Hits Supply Chains
New Zealand business confidence fell to -10.6 in April 2026 as record fuel price hikes following Middle East conflict impacted profit expectations and inflation outlooks.
Economy
NZGeopolitical Shock Sends New Zealand Business Confidence Into Negative Territory
New Zealand business confidence plummeted to -10.6 in April 2026, a 43-point swing from March, as Middle East conflict and fuel supply disruptions trigger a sharp cost shock.