Saturday, October 24, 2020
Home Europe Covid pushes New Zealand into worst recession

Covid pushes New Zealand into worst recession

New Zealand shopkeeper with Covi-19 shield and facemask.Image copyright
Getty Images

New Zealand is in its deepest recession in decades, following strict measures in response to the Covid-19 pandemic which were widely praised.

The country’s GDP shrank by 12.2% between April and June as the lockdown and border closures hit.

It is New Zealand’s first recession since the global financial crisis and its worst since 1987, when the current system of measurement began.

But the government hopes its pandemic response will lead to a quick recovery.

The nation of nearly five million was briefly declared virus free, and although it still has a handful of cases, it has only had 25 deaths.

The economy is likely to be a key issue in next month’s election, which was delayed after an unexpected spike in Covid-19 cases in August.

Stats NZ spokesman Paul Pascoe said the measures implemented since 19 March have had a huge impact of some sectors of the economy.

“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,” he said.

Prime Minister Jacinda Ardern’s government has said the success in suppressing the virus is likely to help recovery prospects.

Finance Minister Grant Robertson said the GDP numbers were better than expected, and suggested a strong recovery ahead.

“Going hard and early means that we can come back faster and stronger,” he said.

Some economists are also predicting a swift recovery, because of New Zealand’s strong response to the virus.

“We expect the June quarter’s record-breaking GDP decline to be followed by a record-breaking rise in the September quarter,” said Westpac Senior Economist Michael Gordon.

But Treasury forecasts released yesterday suggested massive debt and continuing disruptions are likely to delay a full recovery.

The opposition National party accused the government of a lack of pragmatism that made the impact worse than it needed to be.

New Zealand recorded a steeper drop than neighbouring Australia, where the lockdown was less severe.

But the state of Victoria has faced a second lockdown, which is likely to weigh on Australia’s economic recovery.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Ryder Cup 2010

McDowell knew the Twenty Ten course like the back of his hand. He’d won the Wales Open on the course that year and during a period when he lived in Cardiff he used the venue as his practice area.As the match descended into the home stretch McDowell sunk a 15-foot birdie to go 2-up on…

GB’s Evans calls opponents ’embarrassing’

Evans was knocked out in the singles in the first round by Kei Nishikori of JapanBritain's Dan Evans said his doubles opponents were "embarrassing" after becoming involved in an on-court row at the French Open.The British singles number one and Polish partner Hubert Hurkacz beat Dutchman Matwe Middelkoop and Brazilian Marcel Demoliner in the first…

US team walks off after ‘homophobic slur’

Collin Martin (pictured playing for former club Minnesota United) came out as gay in 2018Landon Donovan said his San Diego Loyal "would not stand" for bigotry having left the pitch in protest after an alleged homophobic comment was aimed at openly gay midfielder Collin Martin.An opposition player from Phoenix Rising was accused of making the…

As colleges reopened, many more young people got covid-19, CDC reports – msnNOW

Covid-19 cases surged nationally among 18- to 22-year-olds between Aug. 2 and Sept. 5, according to a report released Tuesday by the Centers for Disease Control and Prevention, which urged young adults as well as colleges and universities to take precautions to prevent the spread of the virus.Weekly cases among the age group jumped 55…