New Zealand

New Zealand averts recession as eased Covid measures help spur 1.7% GDP growth | New Zealand

Helped by increased spending on travel and leisure due to relaxation of COVID-19 restrictions new zealand The economy grew 1.7% in the quarter ending June, which could fend off a recession.

This growth reversed a 0.2% drop in GDP last quarter and means the country has avoided a ‘technical recession’, defined as two consecutive quarterly declines in GDP.

The rise is largely driven by the country’s easing of Covid measures. have all increased.

The services sector, which accounts for about two-thirds of the economy, increased by 2.7%. Transportation, mail and warehousing increased 19.7%, driven by higher spending on air transportation. Statistics NZ said Thursday.

Although the increase will be small, it will be welcomed by the government.

Chancellor of the Exchequer Grant Robertson said the figures showed New Zealand was “well positioned to meet the challenges ahead” amid challenging global economic forecasts.

“The outlook for the global economy has been revised downward as high inflation, the war in Ukraine and the ongoing pandemic-related turmoil continue to affect trading partners,” he said.

“We are not immune to what happens across borders, but we start with positive optimism.”

New Zealand showed a larger quarterly increase than many of the countries it compares itself to. This outpaced the 0.4% rise in OECD June quarter GDP, the 0.1% fall in the US and her 0.9% gain in Australia.

Opposition spokesman Nicola Willis said rising GDP will not stop New Zealanders from feeling the heat of inflation, and the country’s economy grew modestly on an annual basis in the year to June. 1%, lagging behind comparable countries such as Australia.

Compared to the same period last year, New Zealand grew just 0.4%, well below the OECD total of 3.7%, Australia’s 3.6% or the UK’s 2.9%, according to data from Stats NZ.

“New Zealand’s avoidance of recession so far is welcome, but growth remains sluggish as inflation remains at its highest level in a generation,” Willis said.

“Food prices rose 8.3% in the year to August 31, the highest in 13 years. Most Kiwis are set back as wages struggle to keep up with rising prices. .” New Zealand averts recession as eased Covid measures help spur 1.7% GDP growth | New Zealand

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