Economics
New Zealand Economy Surprisingly Contracts as Covid Spread
- Annual growth slows to just half the pace economists predicted
- Result is unlikely to deter RBNZ from pursuing higher rates
Pedestrians cross a road in Auckland, New Zealand, on June 13.
Photographer: Fiona Goodall/BloombergThis article is for subscribers only.
New Zealand’s economy unexpectedly contracted in the first quarter as Covid-19 ran rampant through the population for the first time and interest rates rose in response to soaring inflation.
Gross domestic product fell 0.2% from the fourth quarter, compared with a forecast 0.6% gain, Statistics New Zealand data showed Thursday in Wellington. From a year earlier, the economy expanded 1.2%, just half the 2.4% predicted.