SYDNEY, March 20, 2025 (BSS/AFP) - New Zealand has crawled out of a shallow recession as the nation's all-important farming and tourism sectors splutter back to life, official data showed Thursday.

The country's economic output grew by 0.7 percent in the quarter to December, according to new government figures, a modest lift after tipping into recession last September.

It was largely fuelled by agriculture -- New Zealand is one of the biggest milk exporters in the world -- and a rebounding tourism sector.

"Higher spending by international visitors led to increased activity in tourism-related industries such as accommodation, restaurants and bars, transport, and vehicle hiring," a government statement said.

A recession is usually defined as two consecutive quarters of contraction.

Once dubbed a "rock-star economy" for its ability to weather financial crises, New Zealand has been battered in recent years.

Natural disasters have devastated swathes of farming country, while global supply chain issues hurt the island nation more than most.

Tourist numbers have struggled to match the peaks seen before the Covid pandemic.

Finance Minister Nicola Willis said that data "confirms that New Zealanders can look forward to a better future".