New Zealand has found itself in its second recession within a span of 18 months, as revealed by the most recent GDP data.
Stats NZ disclosed that the country’s economy contracted by 0.1% in the December quarter and 0.7% in per capita terms, according to their announcement on Thursday.
The recent decline, following a 0.3% contraction in the September quarter, meets the technical definition of a recession. This marks New Zealand’s second recession event in the past 18 months.
Stats NZ said the country New Zealand had returned negative GDP figures in four of the last five quarters, and had a stagnant annual growth rate of just 0.6%.
The downturn was widely anticipated, with New Zealand’s central bank predicting a stagnant figure, while bank economists offered a spectrum of forecasts ranging from a slight contraction to minimal growth.
In a per capita context, the data painted a bleaker picture, with the last five quarters all showing a retreat by an average of 0.8%.
Aiding in bolstering the economy of the South Pacific island nation has been a record migration intake, reaching a peak of 141,000 new arrivals in 2023.
Without this influx of population growth stimulating an otherwise stagnant economy, New Zealand’s economic situation would be deteriorating at a swifter pace.
Regulation Minister David Seymour mentioned that the current economic conditions would prompt cuts in the country’s upcoming budget, including reductions in the number of government workers.
“We’re in a slump, but that won’t be news to you, because you’ve already been living in it,” remarked Seymour.