Pacesetter New Zealand’s Recession May Be Harbinger for World

  • Gross domestic product declines for a second straight quarter
  • Recession confirmation comes four months ahead of an election
New Zealand Economy Falls Into Recession
Lock
This article is for subscribers only.

New Zealand led the world in raising interest rates to combat the post-pandemic inflation wave. Now it’s officially in recession in a possible harbinger of what lies ahead for others.

Gross domestic product fell 0.1% from the fourth quarter, when it dropped a revised 0.7%, Statistics New Zealand said Thursday in Wellington. Those two quarterly contractions meet the local definition of recession.