July 23, 2024

The Queens County Citizen

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New Zealand entered recession

New Zealand entered recession

New Zealand Prime Minister Chris Hipkins. Marty Melville / AFP

It is the country’s first recession since 2020, when the pandemic closed its borders and weighed on its exports.

New Zealand entered a technical recession at the start of the year, recording its economy’s second consecutive quarter of contraction of 0.1%, according to statistics agency Stats NZ figures published on Thursday (June 15). The GDP decline in the first three months follows a 0.7% decline in the final quarter of 2022. A technical recession is defined as two consecutive quarters of economic contraction.

It is New Zealand’s first recession since 2020, when the pandemic closed its borders and weighed on its exports. According to Finance Minister Grant Robertson, this is the result “No wonder”, against a backdrop of global economic depression, hyperinflation and a devastating climate in the North Island. The country’s largest city, Auckland, was hit by floods in January and damage from Cyclone Gabriel the following month, hanging in the balance. The government estimates the cost of repairs will rise to 15 million New Zealand dollars (8.5 million euros).

At the same time, inflation stood at 6.7% over a year in March 2023.

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