{"id":5588,"date":"2023-06-15T11:30:29","date_gmt":"2023-06-14T23:30:29","guid":{"rendered":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=5588"},"modified":"2023-06-15T11:30:35","modified_gmt":"2023-06-14T23:30:35","slug":"new-zealand-officially-in-recession-as-gdp-falls-for-second-quarter","status":"publish","type":"post","link":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=5588","title":{"rendered":"New Zealand officially in recession as GDP falls for second quarter"},"content":{"rendered":"
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New Zealand officially in recession as GDP falls for second quarter<\/h1>\n
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\"Wharf<\/p>\n

Economists, the Reserve Bank and Treasury have been predicting a shallow economic recession from mid-2023.\u00a0<\/span>Photo:\u00a0RNZ\/ Jean Bell<\/span><\/p>\n<\/div>\n

The New Zealand economy slipped into recession at the start of the year.<\/p>\n

Stats NZ figures showed gross domestic product (GDP), the broad measure of economic growth, fell a seasonally adjusted 0.1 percent in the three months ended March.<\/p>\n

It was the second consecutive quarter of negative economic growth, following the previous quarter’s revised fall of 0.7 percent. That meets the\u00a0technical definition of a recession<\/a>.<\/p>\n

It followed a revised 0.7 percent contraction in the final quarter of last year, meeting the technical definition of recession when there are two consecutive quarters of negative economic growth.<\/p>\n

The result was in line with economists’ expectation of a 0.1 percent contraction in a poll by Reuters, and at odds with the Reserve Bank forecast of 0.3 percent growth.<\/p>\n

Most parts of the economy slowed or contracted, with services, exports, and agriculture offsetting a slight rise in construction.<\/p>\n

Business services were the biggest downwards driver, falling 3.5 percent, Stats NZ said.<\/p>\n

“Management consulting, advertising, scientific, and engineering design services drove the fall in business services,” Stats NZ economic and environmental insights general manager Jason Attewell said.<\/p>\n

The result included the initial impact of Cyclone Hale and Cyclone Gabrielle, and the teachers’ strikes, Stats NZ said.<\/p>\n

Agriculture, forestry and fishing contracted 0.7 percent, manufacturing fell 1.1 percent, and education and training fell 1.9 percent.<\/p>\n

“The adverse weather events caused by the cyclones contributed to falls in horticulture and transport support services, as well as disrupted education services,” Attewell said.<\/p>\n

“Fewer teaching days led to falls in primary and secondary education services,” he said.<\/p>\n

The last time New Zealand’s economy entered a\u00a0technical recession was in 2020<\/a>\u00a0as economic activity slowed due to the first Covid-19 lockdown and border closures.<\/p>\n

However, that recession was short-lived as activity rebounded as restrictions were eased.<\/p>\n

The Reserve Bank had forecast the country would slip into recession in the second quarter of 2023, while the\u00a0Treasury was more upbeat<\/a>\u00a0and expected the country to avoid recession.<\/p>\n

The RBNZ signalled last month it had ended its tightening cycle, after\u00a0raising the official cash rate<\/a>\u00a0by 25 basis points to 5.5 percent.<\/p>\n<\/div>\n

SOURCE RNZ<\/p>\n","protected":false},"excerpt":{"rendered":"

New Zealand officially in recession as GDP falls for second quarter Economists, the Reserve Bank and Treasury have been predicting a shallow economic recession from mid-2023.\u00a0Photo:\u00a0RNZ\/ Jean Bell The New Zealand economy slipped into recession at the start of the year. Stats NZ figures showed gross domestic product (GDP), the broad measure of economic growth, […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[222,174],"tags":[],"class_list":["post-5588","post","type-post","status-publish","format-standard","hentry","category-latest-news","category-nz-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/5588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5588"}],"version-history":[{"count":2,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/5588\/revisions"}],"predecessor-version":[{"id":5590,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/5588\/revisions\/5590"}],"wp:attachment":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}