Pacesetter New Zealand’s Recession May Be Harbinger for World

New Zealand’s GDP fell 0.1%, meeting the local definition of a recession, after being one of the first to raise interest rates to combat post-pandemic inflation.

June 15, 2023 . 10:55 AM

1 min read

New Zealand’s GDP fell 0.1% from the fourth quarter, meeting the local definition of a recession.
New Zealand was one of the first countries to raise interest rates to combat post-pandemic inflation.
Households grappling with soaring prices see mortgage repayments jump.
Confirmation of a recession comes four months before a general election in which cost-of-living pressures and the economic downturn are sure to feature.
The RBNZ still has a sticky inflation problem to solve before considering rate cuts.