New Zealand Economy Falls Into Recession, First Since 2020
First Published: 15th June, 2023 8:33 IST
This is New Zealand's first recession since 2020, when the pandemic shuttered borders and choked exports.
New Zealand’s agriculture-driven economy has fallen into recession, according to official data released Thursday, with a damaging cyclone fuelling a widespread downturn just months before national elections.
As per a report published NDTV, Stats NZ signalled the economy had contracted 0.1 percent in the first quarter, after a fall of 0.7 percent at the end of 2022.
Four months before the general election, centre-left finance minister Grant Robertson admitted that entering recession was “not a surprise”.
“We know 2023 is a challenging year as global growth slows, inflation has stayed higher for longer and the impacts of North Island weather events continue to disrupt households and businesses,” he said.
January flooding in Auckland and destruction caused by Cyclone Gabrielle in February both weighed on the economy.
The government estimates it will cost up to NZ$15 million (US$9 million) to mop up the damage caused by the extreme weather.
This is New Zealand’s first recession since 2020, when the pandemic shuttered borders and choked exports.
With the economy shrinking, inflation hitting 6.7 percent and an October 14 election approaching, the centre-right opposition was quick to point blame at the government.
“Red lights are flashing for the New Zealand economy, which has shrunk even while inflation rages on,” said opposition finance spokesperson Nicola Willis.
Agriculture, manufacturing, transport and services all saw declines.
COMMENTS
TOPMOST STORY NOW
Live Assam: Tiger Terror Strikes Kaliabar Again
29th December 2024
Live Sikkim Celebrates Kagyad Dance Festival At Tsuklakhang Palace, Gangtok
29th December 2024
Live Heavy Traffic At Nathula (Indo-China Border) As Tourists Flock To Witness Season’s First Snowfall
29th December 2024
Live BGT 2024-25: Bumrah overtakes Kapil Dev to reach stunning milestone on Australian soil
29th December 2024
WE RECOMMEND
17 Christian Tripura Community Houses Burnt in Alleged Arson Attack in Bangladesh
The incident occurred at around 12:30 am in the Notun Tongjhiri Tripura Para area, located in the Sarai union of Lama upazila.
26th December 2024
“Ukrainian people deserve to live in peace and safety”: US President Biden condemns Russian missile strikes on Ukraine
He also said that the US Department of Defence would increase the weapon deliveries to Ukraine and called on the international community.
26th December 2024
Death toll rises to 38 in Azerbaijan Airlines plane crash near Kazakhstan’s Aktau
The plane, which had 62 passengers and five crew members on board, crashed after being forced to make an emergency landing.
26th December 2024
Pakistani airstrikes in Afghanistan’s Paktika province kill at least 15
The airstrikes have caused severe civilian casualties and widespread destruction, further escalating tensions in the region.
25th December 2024
Bangladesh requests India to send Sheikh Hasina back
The request was made through a "note verbale" to the Indian government, Bangladesh's Interim government's Foreign Affairs Adviser.
23rd December 2024