New Zealand's gross domestic product fell 0.1% in the December 2023 quarter, according to figures released by Stats NZ today.
This follows a 0.3% decrease in the September 2023 quarter, meaning that the country is technically in a recession.
Recession is generally defined as two successive quarters where the economy contracts.
1News business correspondent Katie Bradford speaks about the GDP figures and a big report into the banking sector. (Source: 1News)
“Wholesale trade was the largest downwards driver this quarter, led by falls in grocery and liquor wholesaling; and machinery and equipment wholesaling,” national accounts industry and production senior manager Ruvani Ratnayake said.
Retail trade activity also fell, driven by furniture, electrical, and hardware retailing; and food and beverage services.
Results at industry level were mixed – 8 out of 16 industries increased, driven by rental, hiring, and real estate services; and public administration, safety, and defence.
The expenditure measure of GDP was flat at 0.0% in the December 2023 quarter. Rising net exports which contributed to expenditure were offset by a rundown in retail and wholesale inventories.
A rise in spending on services, primarily transport, led growth in household spending of 0.5%.
The general election in October caused increased activity which contributed to growth in public administration, safety and defence, said Ratnayake.
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