New Zealand’s economic recovery is facing headwinds due to the ongoing conflict in Iran, but officials still anticipate a return to growth later this year, according to Finance Minister Nicola Willis.

Willis stated that the war's impact has temporarily slowed the country’s initial economic rebound. While the situation presents challenges, she emphasized that the recovery remains fundamentally on course. The government is closely monitoring the evolving global situation and its potential effects on New Zealand’s economy.

The New Zealand economy has been navigating a period of transition following the pandemic, with earlier signs of positive momentum. The war in Iran introduces new uncertainties, particularly regarding energy prices and global supply chains. These factors could influence inflation and impact business confidence.

The government remains committed to supporting economic stability and fostering an environment conducive to sustainable growth. Further details regarding economic forecasts and policy responses are expected to be released in upcoming government reports. The Ministry of Economic Development is actively assessing the situation and providing guidance to businesses.