New Zealand's gross domestic product (GDP) grew 0.7% in the December 2024 quarter, rebounding from a 1.1% contraction in the September quarter, as tourism and real estate activity picked up, Stats NZ said on Thursday.

11 of 16 industries expanded during the quarter, led by rental, hiring, and real estate services; retail trade and accommodation; and healthcare and social assistance.

Construction fell 3.1%, marking a third consecutive quarterly decline, while information media and telecommunications contracted due to weaker telecommunications and internet services, as well as lower broadcasting and internet publishing activity.

GDP per capita rose 0.4%, the first increase in two years.

The expenditure measure of GDP increased 0.8%, following a 0.9% fall in the prior quarter, with household spending up 0.1%, driven by higher spending on audio-visual and telecommunication equipment.

CommBank Research said the fourth-quarter growth was weaker than a typical cyclical rebound, adding that base momentum is expected to remain subdued through much of 2025.

The bank's first-half 2025 growth forecast is significantly below the Reserve Bank of New Zealand's assumption, citing both demand and supply-side challenges and a volatile global environment as constraints on the recovery, the research firm said.