The Gross Domestic Product (GDP) of New Zealand has fallen by 12.2% from three months to June leading to a recession in the country for the first time in a decade.
“The 12.2-per cent fall in quarterly GDP is by far the largest on record in New Zealand,” the national statistics agency said.
The reporting period covers April to June, coinciding with a strict lockdown that began in late March and began easing in late May.
Stats NZ spokesman Paul Pascoe said the closure of New Zealand’s borders since March 19 had also had a huge impact of some sectors of the economy.
Finance Minister Grant Robertson said the sharp economic decline was no surprise, but the government’s measures such as the wage subsidy, business loans, and other schemes had cushioned the impact and laid the foundation for the rebound.
“Going hard and early means that we can come back faster and stronger. Economists expect the current September quarter to show a record jump back to growth in the economy.”