New Zealand M2 Money Supply Growth

New Zealand’s M2 money‑supply growth has slipped into negative territory, registering a decline of ‑0.12 percent in 2025, which places the country at rank 110 globally. This modest contraction follows a long‑term pattern of modest fluctuations since the series began in 1961, when growth was ‑2.11 percent. The most pronounced expansion occurred in 1988, when the annual increase surged to 108.94 percent, a level unmatched in the 62‑year record. Conversely, the deepest contraction was recorded in 1967 at ‑2.69 percent, underscoring the volatility of monetary aggregates in earlier decades. Among peers with similar rankings, Thailand posted a comparable decline of ‑0.10 percent and Niger a larger fall of ‑0.32 percent, highlighting that New Zealand’s slowdown is not isolated. Continued pressure from subdued inflation and tighter monetary policy could keep the M2 growth trajectory flat or slightly negative, unless a shift toward accommodative financing or a rebound in credit demand alters the current path.