Summarised by Centrist
New Zealand’s economy has been in a technical recession for two years, with quarterly GDP per capita falling consistently since late 2022.
This prolonged downturn, measured over successive quarters, may be a result of sustained economic challenges and volatility. External shocks such as COVID restrictions and global disruptions impacted GDP.
Quarterly GDP per capita change is used to measure recessions because it provides a clearer view of short-term trends and economic instability. Some argue the convention of defining a recession as two consecutive quarters of GDP contraction is inadequate, while others believe it is a fair benchmark for holding governments accountable.
Factors like the nationwide COVID lockdowns between March 2020 and December 2021 left lasting economic effects, but the ongoing GDP contraction suggests broader structural issues.
