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 ICMR-RMRC NE Transfers Indigenous CRISPR TB Test to Meril Diagnostics for Mass Production
30th April 2025
Live Tripartite Talks on Manipur District Creation Deferred, New Date Awaited
30th April 2025
Live Manipur Governor Ajay Kumar Bhalla Chairs High-Level Security Meeting in Imphal
30th April 2025
Live CM Lalduhoma Meets India Wine Producers Association, Discusses Setting Up Wine Industry in Mizoram
30th April 2025
WE RECOMMEND
India bans 16 Pakistani YouTube channels over misinformation; Centre writes to BBC over Pahalgam reportage
Collectively, these channels have a massive following of over 63 million subscribers.
28th April 2025
At least 14 people killed, 750 others injured in explosion at key Iranian port
The Ministry of Health has mobilised health teams and taken emergency measures to protect the health of citizens.
27th April 2025
Under pressure, Pakistan PM Shehbaaz Sharif makes appeal for neutral probe on Pahalgam attack
India also halted the Indus Waters Treaty signed in 1960 in the wake of the Pahalgam attack.
26th April 2025
Pope Francis Funeral Today: President Droupadi Murmu, Union Minister Kiren Rijiju, Meghalaya CM Conrad in Vatican
The funeral will take place at the majestic Baroque plaza in front of St. Peter’s Basilica at the Vatican at 1:30 PM India time.
26th April 2025
“That was bad one”: US President Donald Trump on Pahalgam Terrorist Attack
Trump on Pahalgam attack: He noted that there have always been tensions between Pakistan and India on the border.
26th April 2025