New Zealand GDP shrank -1.6% qoq in Q1, worst than expectation of -1.0% qoq. That’s also the largest decline in 29% as the initial effects of coronavirus restrictions impacted on economic activity. “The 1.6 percent fall surpassed quarterly falls during the global financial crisis in the late 2000s,” national accounts senior manager Paul Pascoe said. “It is the largest quarterly fall since the 2.4 percent decline in the March 1991 quarter.”
Finance Minister Grant Robertson said “the biggest impact of the global recession and Alert Level 4 public health restrictions will be seen in the current June quarter.” He added, “now, our focus is on protecting jobs and supporting the economy to recover and rebuild through the investments made in Budget 2020 and by the COVID Response and Recovery Fund. By opening up the economy quicker than forecast, we’ve got a head start on our recovery.”
