Recession: New Zealand has fallen into recession for the second time in just 18 months. According to the data, the country's economy has seen a decline of 0.1 percent in the quarter of December 2023. At the same time, the country's GDP in per capita terms has decreased by 0.7 percent. Earlier, there was a decline of 0.3 percent in the September quarter. In such a situation, the country is in the grip of recession for the second time in just 18 months. Let us tell you that continuous decline in GDP is considered a sign of recession.
New Zealand's economy continues to decline
According to data from New Zealand's government agency Stats NZ, the country's economy has declined in four out of the last five quarters. At the same time, the country's annual GDP has been only 0.6 percent. This figure is not surprising for the government because the Central Bank of New Zealand had already predicted a recession by predicting negative GDP figures.
New Zealand's central bank may cut interest rates
Earlier, the Central Bank of New Zealand had already hinted at cutting its interest rates. To control inflation in the country, the Central Bank of New Zealand had also increased the interest rates, but in view of the falling GDP figures, the bank may soon decide to cut the interest rates.
< p style="text-align: justify;">The government is also very troubled by the GDP figures. Regulation Minister David Seymour has said that the government is currently trying to reduce its expenditure. This includes cuts in the government budget to reduction in the number of government employees.
Also read-
Get more latest business news updates