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 Restoration of rail track in Assam to take time, will fuel crisis in Tripura worsen? Tripura Govt writes to Railway Minister
08th May 2024Live Arunachal Pradesh: Workers union alleges illegal appointments in PHED & WS department
08th May 2024Live Swine flu kills another minor in Assam, second death in 3 days
08th May 2024Live Meghalaya faces water shortage, residents struggle
08th May 2024WE RECOMMEND
Indiana Primary Election Results: Donald Trump, Joe Biden projected to win
On March 12, both Biden and Trump had acquired the requisite number of delegates to become their respective party's nominees, guaranteeing the outcome in Indiana.
08th May 2024Russia will emerge stronger, says Vladimir Putin after taking oath as President
Putin also expressed heartfelt gratitude to Russian citizens nationwide, including those in historically significant regions, for their unity with the Motherland.
08th May 2024Vladimir Putin sworn in as Russia’s president for record fifth term
Constitutional Court Chairman Valery Zorkin announced that Putin has formally taken office as Russian president for another six-year term, TASS reported.
07th May 2024Shakira makes Met Gala debut in voluminous red gown
The gown featured a high slit at the leg, an open back, a low-cut sweetheart neckline and skin-baring cutouts on the sides.
07th May 2024Indian-origin astronaut Sunita Williams to fly to space again on first crewed mission of Boeing’s Starliner
The launch is scheduled to take place on 10:34 p.m. EDT Monday, May 6, ie May 7 at 8.04 am Indian Standard Time.
06th May 2024