New Zealand's economy shrank by 0.6 per cent in the final quarter of 2022, a greater contraction than expected.
Market expectation was for an 0.2 per cent fall in the December quarter, suggesting a predicted shallow recession may arrive ahead of time.
The Reserve Bank and Treasury both tipped the Kiwi economy would tip into recession in 2023, however these numbers show a contraction began last year.
Stats NZ reports nine of its 16 industry categories reported a fall in activity, led by manufacturing which was down 1.9 per cent.
"A fall in transport equipment, machinery, and equipment manufacturing corresponded to lower investment in plant, machinery, and equipment," Stats NZ's Ruvani Ratnayake said.
"Reduced output in food, beverage, and tobacco manufacturing was reflected in a drop in dairy and meat exports."
NZ is also battling to regain its tourist numbers from pre-COVID levels, despite lifting its last remaining travel restrictions in August.
"We would typically see higher activity in industries linked to tourism such as accommodation, retail, and transport, in what is usually the beginning of New Zealand's peak tourist season," Ms Ratnayake said.
The dip follows a 1.7 per cent rise in Q3 2022, and a 1.6 per cent rise in Q2 2022 for annual growth of 2.4 per cent in the calendar year.
As with many developed nations, economic output has produced roller-coaster figures during the COVID-19 era.
Nine years of consistent GDP growth between one and five per cent was upended by the pandemic, which gave NZ a lockdown recession in 2020.
While the figures are bad news for the broader economy, they also give Chris Hipkins' government a political challenge in an election year.
Data for the first quarter of 2023 is expected in June as election campaigning hots up ahead of an October 14 poll date.
Should it produce another contraction, the recession would be confirmed.
