New Zealand Falls into Recession with Record 12.2% Economic Drop

New Zealand’s economy plunged into recession for the first time in a decade with a 12.2% drop in the second quarter of 2020, following a 1.6% drop in the first quarter.

The national statistics agency said “The 12.2% fall in quarterly GDP is by far the largest on record in New Zealand,”

Paul Pascoe, stats New Zealand spokesperson, said “Industries like retail, accommodation and restaurants, and transport saw significant declines in production because they were most directly affected by the international travel ban and strict nationwide lockdown,”

Pascoe added “Other industries, like food and beverage manufacturing, were essential services and fell much less.”

However, 12.2% was well below the 16% predicted by the government and substantially less than the 23.5% forecast in the budget last May.

Grant Robertson, Finance Minister, said “Going hard and early means that we can come back faster and stronger,”

Robertson added “Economists expect the current September quarter to show a record jump back to growth in the economy.”