New Zealand has officially entered its second recession in 18 months as the latest GDP figures revealed a contraction in the economy during the last quarter of 2023. According to Stats NZ, the country's economy shrank by 0.1% in the quarter ending in December, with a per capita contraction of 0.7%. This decline follows a 0.3% contraction in the previous quarter, meeting the technical definition of a recession.
Stats NZ reported that New Zealand has experienced negative GDP figures in four of the last five quarters, resulting in an annual growth rate of just 0.6%. Economists had anticipated this downturn, with the central bank predicting a flat figure and various bank economists suggesting a range of outcomes from slight contraction to minimal growth.
