Kiwibank forecasts mixed economic outlook for New Zealand in 2025

Kiwibank predicts a mixed economic outlook for New Zealand in 2025. The first half is expected to be challenging, with unemployment rising to 5.3 percent, while the second half may see improved growth, reaching 2.2 percent by year-end. Interest rates are projected to drop by 1.25 percentage points to 3 percent, which could lead to a 6 percent increase in house prices after a stagnant period. The housing market is anticipated to recover as investor activity returns. Kiwibank notes that confidence is improving among businesses as the Reserve Bank cuts rates. This shift may help businesses and consumers look beyond immediate challenges toward future opportunities.