New Zealand's Finance Minister says the country's economic performance exceeds expectations.

New Zealand Finance Minister Willis said on Monday that the performance of the New Zealand economy has been better than the forecasts made by the Treasury in December last year. Willis said that the preliminary economic and fiscal forecasts made by the Treasury for the 2026 government budget are "very positive, and overall more optimistic compared to the latest forecasts." "The latest estimates show that the economy grew by 1.7% last year, while the Treasury initially forecast economic growth of 3% in the next two fiscal years," she said. In the third quarter of 2025, the economy grew by 1.3% year-on-year. The Treasury previously forecasted economic growth of 1.7% for the 2026 fiscal year ending on June 30, and 3.4% for the 2027 fiscal year. Willis added that these optimistic forecasts are the result of multiple factors working together: a low interest rate environment, export prices reaching historic highs, the recovery of the tourism industry, improved business confidence, and strengthening consumer confidence.