New Zealand has entered technical recession, with suspicions finally confirmed today.
Gross domestic product (GDP) fell 0.1 percent in the December 2023 quarter, compared with the September quarter.
Economists traditionally define a recession as two successive quarters where the economy contracts.
GDP per capita fell 0.7 percent in the last three months of the year, Stats NZ said today.
And real gross national disposable income fell 1.4 percent.
The economy shrank despite record migration levels and population growth.
Manufacturing, wholesale trade,retail trade and accommodation, and the transport, postal, and warehousing sectors all took a hammering in the quarter, according to Stats NZ data.
Wholesale trade was the largest downwards driver this quarter, with falls in grocery and liquor wholesaling leading the plunge.
Suspicions of widespread trouble in the retail sector were confirmed, with falls in furniture, electrical, and hardware retailing.
Stats NZ national accounts industry and production senior manager Ruvani Ratnayake said increased activity associated with the NZ general election contributed to growth in the public administration, safety, and defence sectors.
Despite the grim quarterly news, GDP rose 0.6 percent over the year ended December 2023.
That was largely thanks to a relatively strong June quarter, when the economy grew by 0.5 percent.
As for whether New Zealand is still in the economic quagmire, GDP data for the current January to March quarter will likely not be released for another three months.
