New Zealand's economy officially entered a recession as the country's GDP dropped by 1.0 per cent in the third quarter (Q3) of 2024, a sharper contraction than anticipated. This marks the steepest two-quarter decline since the 1991 recession, excluding pandemic disruptions. Reportedly, the sharp contraction exceeded forecasts, which had predicted a modest 0.2 per cent drop, with weakness observed across key sectors like manufacturing, construction, and utilities. Household and government spending also declined, while investment and exports struggled. The Reserve Bank of New Zealand is now under pressure to slash rates further, with markets anticipating a 50-basis-point cut in February 2025. The local currency plummeted to a two-year low, reflecting the deepening economic crisis. New Zealand Haka Protest: NZ’s Youngest MP Hana-Rawhiti Maipi-Clarke Performs Traditional Maori Dance, Tears Copy of Treaty Principles Bill As She Leads Stir in Parliament (Watch Video).
New Zealand Enters Recession as GDP Drops 1.0% in Q3
NZ gross domestic product (GDP) dived 1.0% in the September quarter from the prior quarter, dwarfing market forecasts of a 0.2% contraction. The June quarter was revised to show a fall of 1.1%, and two straight quarters of decline is the technical definition of recession. #nzpol https://t.co/xphFGCDosy
— CommSec (@CommSec) December 18, 2024
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