New Zealand emerges from recession – 06/20/2024 at 10:02

New Zealand has managed to emerge from recession, according to official data released Thursday by the Government Statistics Office, a positive sign despite the “lingering shadow” of inflation, according to Wellington.

The Oceania nation's GDP rose in the first quarter (+0.2%) according to Stats NZ, better than experts expected. Four of the previous five quarters resulted in a contraction in the economy.

According to the Finance Minister, this new indicator is a positive sign, but “New Zealanders are still aware of the remaining shadow of a long period of high inflation, with interest rates rising.”

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According to Finance Minister Nicola Willis.

Agriculture and tourism, two essential sectors in the country with a population of about five million people, have been put to the test in recent years.

Natural disasters have devastated vast agricultural areas, while global supply chain problems have damaged the economy of the geographically isolated country.

The number of tourists is struggling to return to pre-Covid-19 levels. The country did not fully reopen its borders until the summer of 2022.

At the end of May, the center-right government unveiled a budget that included tax cuts. In order to finance it, Prime Minister Christopher Luxon announced cuts in government spending. Thousands of public sector employees had previously been laid off.