New Zealand's GDP records a historic low

New Zealand’s GDP records a historic low

After being hailed for the successful handling of the pandemic, the country has resorted to cumbersome restrictions on the economy.

On the health front, Prime Minister Jacinda Ardern has made a major breakthrough. So far, only 26 of New Zealand’s population of 5 million have died from Covid-19.

But the measures adopted to combat the epidemic weigh on the economy, even if their impact is less severe than in other countries. The government said on Thursday that New Zealand’s gross domestic product (GDP) contracted by 2.9 percent in 2020. It was the worst performance on record in the archipelago.

After a six-month contraction in early 2020, New Zealand activity posted a 13.9% rebound in the third quarter before contracting again by 1% in the fourth. The border closures have severely affected the tourism sector, which is key to the economy and is particularly affected by the absence of international travelers in the high season. This has reduced retail sales and hotel reservations. At the start of 2021, activity will decline further due to

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