New Zealand Retail Sales Beat Expectations, Recovery Momentum Strengthens

New Zealand's economy showed robust signs of recovery on February 23, 2026, with retail sales data exceeding forecasts. Statistics New Zealand reported a 1.2% quarterly increase, surpassing the expected 0.8%, driven by tourism rebound and consumer spending on electronics and hospitality.
This beat comes after a sluggish 2025, marked by high interest rates from the Reserve Bank of New Zealand (RBNZ) to combat inflation. Now at 3.5%, inflation is cooling, allowing for potential rate cuts. "The data confirms momentum in the post-pandemic recovery, with international visitors boosting sectors," noted an economist at ANZ Bank.
Key contributors include a surge in Chinese tourists and domestic confidence, with unemployment steady at 4.2%. However, challenges persist, such as supply chain issues from global tariffs and climate impacts on agriculture.
The positive figures bolster the Kiwi dollar, up 0.5% against the USD. For policymakers, this strengthens the case for measured easing, potentially stimulating further growth. Investors eye NZX stocks in retail and tourism, like The Warehouse Group, as beneficiaries. Overall, the data paints an optimistic picture for New Zealand's economy, signaling sustained upward trajectory.
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