- By Christopher Luxon, Prime Minister and MP for Botany
New GDP (gross domestic product) figures show our economy grew by 0.8 per cent in the first quarter of 2025.
That’s clear evidence recovery is taking hold, thanks to National’s responsible economic management and focused spending on what matters most to Kiwis.
Mortgage rates have fallen, offering new opportunities for both first-time homebuyers and current homeowners.
Statistics from the Reserve Bank of New Zealand show more than half of all mortgages are floating or due to be re-fixed within the next six months, and three-quarters of fixed mortgages are due to be refinanced within the next year.
For a $500,000 mortgage over 25 years, a 2.25 per cent drop means about $320 in your back pocket every fortnight – money that can help families with the cost of living by covering everyday bills like groceries and power.
At the same time, nationwide rental data shows average rents have decreased compared to the same time last year.
Rents are at their lowest since December, 2023, with predictions rent will remain subdued well into next year.
We know Kiwis are still doing it tough, but things are looking more optimistic for the second half of 2025.
We’re reducing red tape, backing our farmers, ruthlessly pursuing trade opportunities, fast-tracking crucial infrastructure, and encouraging investment in new kit with Investment Boost to grow the economy.
Economic growth means more jobs, higher wages, better opportunities, and allows us to invest in quality schools, health, and education all Kiwis deserve.
And there’s more to come, with growth expected to average 2.7 per cent, wages growing faster than inflation every year, and 240,000 jobs expected to be created over the next four years.
These signs are encouraging – momentum is building, and New Zealand is heading in the right direction.
