New Zealand Economy Unexpectedly Shrinks, Entering Recession
- Currency drops as traders boost bets on interest-rate cuts
- Economy tumbles into double-dip recession amid tight policy
The economy has cooled in face of the Reserve Bank’s aggressive monetary policy tightening as it tries to bring inflation back under control.
Photographer: Birgit Krippner/BloombergThis article is for subscribers only.
New Zealand’s economy unexpectedly contracted in the final three months of last year, confirming a recession and sending the currency initially lower as traders boosted bets on interest-rate cuts.
Gross domestic product dropped 0.1% in the fourth quarter after declining 0.3% in the prior three months, government data showed Thursday in Wellington. Economists had expected 0.1% growth. GDP shrank 0.3% from the year-earlier period, worse than estimates of nil growth.