New Zealand falls into recession, as impact of cyclones takes toll

Flooding caused by Cyclone Gabrielle in Awatoto, near the city of Napier, New Zealand in February 2023. New Zealand has fallen into recession. Photograph: AFP/Getty Images

New Zealand has officially entered recession, with the economy shrinking 0.1% in the last quarter.

The economic downturn was exacerbated by the effects of extreme weather that hit the country through February and March, devastating some of New Zealand’s key fruit and vegetable-growing regions and causing extensive damage to the road network, analysts said.