The services industries led the increase in December 2021 quarter GDP, driven by business services and the retail trade sub-industry within retail trade, accommodation, and restaurants.
Economists had anticipated a larger rebound, forecasting a rise of around 3.5 per cent for the quarter.
All the forecasts came in well above the Reserve Bank which had anticipated just 2.3 per cent growth for the fourth quarter.
The New Zealand economy's resilience through the pandemic had been very impressive, but the latest GDP result wasn't "the sort of dramatic overperformance we've become used to, and hints at broader headwinds set to deepen", said ASB senior economist Nathaniel Keall.
"While its pleasing to know that the economy retains its ability to pull off rapid turnarounds, today's figures are already dated in light of subsequent events.
"More timely indicators suggest that the outbreak of Omicron in the community during March has reduced mobility and crimped a fair degree of household spending.
"The upshot is that growth is likely to have moderated, or perhaps even dipped slightly, during the current quarter."
ANZ senior economist Miles Workman described the data as "mixed but robust".
"Even looking beyond the near-term wobbles associated with the Omicron outbreak, a rather potent combo of high inflation and rising interest rates [to hopefully contain inflation] is set to erode household incomes from both ends," Workman said.
"To prevent a hard landing, a lot depends on the revival of international tourism and education, and the labour market holding it together."
Goods-producing industries also contributed to the rise in GDP, with manufacturing and construction the main drivers.
"Households spent more on goods and services, particularly on durable items such as clothing and footwear, and electrical appliances," said StatsNZ national accounts – industry & production senior manager Ruvani Ratnayake.
"Higher levels of activity were seen in most manufacturing sub-industries. There were notable rises in transport equipment, machinery, and equipment manufacturing; and metal product manufacturing, with higher exports of related products seen in the quarter."
Increased investment in other construction, residential buildings, and non-residential buildings also contributed to the higher construction activity in the December 2021 quarter.
The data prompted little change in the New Zealand dollar, which traded at US68.31c soon after the release.
