The New Zealand economy is showing signs of resilience and potential growth in the second quarter of 2025, despite ongoing global uncertainties. Recent data suggests a cautious optimism, with Business Financial Data from Stats NZ indicating a strong performance in 13 out of 14 surveyed industries. This data, representing approximately 70% of GDP, suggests the economy is more resilient than previously anticipated. However, the looming threat of a US-China trade war and the impact of US tariff policies remain significant concerns. The global economic landscape is being reshaped by the imposition of US tariffs, which have significantly impacted China's exports. Chinese exports to the US have declined by 34.5% compared to the same period last year, the steepest drop since the onset of the COVID-19 pandemic. In response, China is experiencing deflation, with the Consumer Price Index (CPI) showing a fourth consecutive monthly decline and the Producer Price Index (PPI) falling by 3.3% in May. This deflation could lead to cheaper consumer goods being exported to New Zealand, including electric vehicles (EVs). New Zealand's EV market is witnessing a resurgence, with sales showing a 52% increase year-to-date compared to the same period in 2024. This growth is attributed to the availability of cheaper Chinese models, which has helped offset the decline in demand following the removal of government subsidies. Fully electric vehicles now account for 5.5% of total new vehicle sales, a significant increase from 3.6% in 2024. Domestically, the aging population is prompting discussions about the sustainability of New Zealand's superannuation system. With an increasing number of individuals working past the traditional retirement age, there is a growing debate about raising the age of eligibility for New Zealand Superannuation. Current data shows that 44% of those aged 65 to 69 are employed, up from 42.2% in previous years. This trend is expected to continue, influencing policy decisions in the coming years. The coming week will provide further insights into the state of the economy, with the release of GDP data, tourism and immigration figures, and electronic card transaction data. These indicators will help gauge the extent of consumer spending and the overall health of the economy. While the global trade tensions remain a wildcard, the potential for cheaper Chinese goods and a resilient domestic economy offers a cautiously optimistic outlook for New Zealand.