New Zealand’s growth rebounds as it survives recession

New Zealand’s growth rebounds as it survives recession

New Zealand recorded a rebound in GDP growth in the second quarter, according to official statistics released on Thursday that showed the country also weathered a recession earlier this year. The government has welcomed the revised statistics as they show that the recession at the start of the year has not finally occurred, as it faces parliamentary elections on October 14.

New Zealand’s statistics service Stats NZ said the Pacific nation’s GDP remained stable from January to March, rather than falling 0.1% as previously expected. The economy had already contracted in the last quarter of 2022, which would have given two consecutive quarters of contraction, indicating entry into a recession. During the second quarter of 2023, quarterly growth accelerated to 0.9% compared to the previous quarter, Stats NZ said.

The New Zealand economy is performing better than expectedThis is partly due to high inflation, said Finance Minister Grant Robertson, whose centre-left Labor government is trailing in opinion polls behind the conservative opposition National Party. “Growth continues and the latest figures show there was no recession in New Zealand earlier this yearGrant Robertson exulted.

The economy is crossing a turning point and showing its strength in the face of the deterioration of the global economy and the impact of extreme weather eventsIn reference to Hurricane Gabriel, which struck the country last February, which resulted in a hefty bill that could reach 15 billion New Zealand dollars ($9 billion). Stats NZ noted that services were the main driver of growth in the second quarter.

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