Summarised by Centrist
New Zealand has officially entered a recession as Gross Domestic Product (GDP) fell by 0.1% in the December 2023 quarter, marking two successive quarters of economic contraction. Not surprisingly former Prime Minister Chris Hipkins rejected blame, saying it’s the current government’s responsibility.
“They are in charge now,” the Labour leader told Newstalk ZB.
“Really a recession is just things going backwards and it’s how you feel. People already felt like we’re in recession,” says NZ Herald business editor at large, Liam Dann. He says that’s not surprising because despite record migration levels and population growth, GDP per capita also declined by 0.7% during the same period.
Dann says the upside is that demand is coming out of the economy and inflation is cooling as a result.
Finance Minister Nicola Willis is quoted as saying: “Last week we saw the price of fresh fruit and produce drop by 9.3 percent which certainly helps Kiwi families who have been pulling in their belts across the board.”
The decline was particularly notable in sectors like manufacturing, wholesale trade, retail trade, and accommodation, indicating widespread economic challenges.
