WELLINGTON, March 19 (Xinhua) -- New Zealand's economy grew modestly in the December 2025 quarter, with gross domestic product (GDP) rising by 0.2 percent from the previous quarter, Stats NZ reported Thursday.

The increase followed 0.9-percent growth in the September quarter and marked the third rise in the past four quarters, the statistics department said.

It was also the first time since late 2024 that the economy recorded annual growth, it said.

Rental, hiring and real estate services were the largest contributors, expanding 0.8 percent in the quarter, statistics showed.

Other sectors posting gains included retail trade and accommodation, financial and insurance services, information media and telecommunications, and arts and recreation, Stats NZ said.

Tourism provided a boost, with spending by overseas visitors contributing to a 7.8-percent rise in travel services exports, flowing through to sectors such as rental car hire, retail trade and accommodation, said Stats NZ general manager and macroeconomic spokesperson Jason Attewel.

Construction, the largest downward contributor to GDP this quarter, fell 1.4 percent after a 3.1-percent drop in building work volumes in the December 2025 quarter, mainly in non-residential projects, Attewell said.

Expenditure-based GDP rose 0.1 percent, supported by stronger government spending but offset by weaker household consumption, statistics showed.

Finance Minister Nicola Willis said the full impact of the recent Middle East conflict "will depend on the severity of the disruptions and how long they last, but realistic scenarios have so far shown growth continuing in 2026." ■