New Zealand’s economy was in a deeper than expected recession in the middle of the year, with widespread contraction across many sectors.
Stats NZ data shows gross domestic product, the broad measure of economic growth, fell 1% in the three months ended September, to be 1.5% lower than a year ago.
Significant revisions to previous figures resulted in a fall of 1.1% in the June quarter, meeting the definition of technical recession.
These were the biggest quarterly falls since late 2021 at the height of the Covid-19 pandemic and lockdowns, but excluding those the six monthly fall was the largest since mid-1991.
However, previous negative readings for 2022/23 have largely disappeared.
Stats NZ said extra data had shown a different performance of the economy.
“The data incorporated this year shows stronger growth over the last year, followed by two significant falls in the latest quarters,” spokesperson Jason Attewell said.
Short, sharp recession
The big falls in the June and September quarters were the biggest quarterly drops since late 2021 at the height of the pandemic and lockdowns.
But excluding those the six-monthly fall was the largest since mid-1991.
The main contributors to the latest contraction were a 2.6% fall in manufacturing, 3.7% in electricity and gas, 2.8% drop in construction and 1.1% decline in retail.
The fall in manufacturing in part reflected the energy crunch in mid-winter which forced some businesses to reduce or halt production.
The growth spots were agriculture on the back of the strong dairy production, information and technology, and rental and real estate industries.
Individual shares of the economy shrank again, by 1.2% during the quarter, the eighth consecutive quarterly fall.
The latest GDP reading is expected to be the low point of the recent economic cycle, with falling interest rates expected to give a spark to household spending and business investment.
Forecasts are for tepid but positive growth from the end of this year picking up pace in the second half of next year to average 2-3% over the next few years.
New Zealand’s economic activity was the weakest of all its major trading partners.
