New Zealand's Gross Domestic Product (GDP) dropped one per cent in the December 2020 quarter. It also declined 2.9 per cent over the year to December 2020, which is the largest annual fall in GDP New Zealand has ever experienced, according to Stats NZ.
The quarterly fall of one per cent came after huge changes in the June and September 2020 quarters.
June saw New Zealand plunge officially into a recession, falling 12.2 per cent, the largest quarterly fall since records began. The September quarter then saw record growth with a 13.9 per cent increase.
Stats NZ's Paul Pascoe said the September quarter "reflected a bounce back after a slump in the June quarter, due to the Covid-19 national lockdown when many businesses were shut for weeks".
"Activity in the December quarter shows a mixed picture — some industries are down, but others have held up or risen, despite the ongoing impact of Covid."
Pascoe said in the December quarter there were falls in construction services, commercial building, and infrastructure — but that was partially offset by growth in residential building, with construction remaining "at historically high levels".
"Businesses ranging from hotels and motels, to restaurants, cafes and bars faced much lower activity in calendar year 2020 than in 2019, with far fewer international tourists in the country because of border restrictions."
He said the one per cent dip was similar to Australia, "but much less of a fall than seen in the European Union or the United Kingdom".
The annual decline of 2.9 per cent was said by Stats NZ to be largely due to the national lockdown last year.
SHARE ME