New Zealand’s economy contracted much more than expected in the third quarter and the second quarter was revised lower, putting it into recession. The Kiwi dollar fell.
Gross domestic product declined 1.0 per cent from the previous quarter when it fell a revised 1.1 per cent, Statistics New Zealand said Thursday in Wellington. Economists expected a 0.2 per cent contraction. GDP fell 1.5 per cent from the year-earlier quarter, more than the expected 0.4 per cent decline.
The New Zealand dollar dropped a quarter of a US cent after the report, buying 56.3 US cents at 10.52 am in Wellington.
The economy is forecast to recover over 2025 now that the Reserve Bank of New Zealand, having tamed inflation, has started to cut interest rates and consumer confidence is rebounding.
