New Zealand is enduring a double-dip recession, with GDP figures confirming another quarter of contraction to close out 2023.
The country’s official data agency, Stats NZ, revealed on Thursday that New Zealand’s economy shrank by 0.1 per cent in the quarter to December, and 0.7 per cent in per capita terms.
Following a 0.3 per cent contraction in the September quarter, that fulfils the technical definition of a recession – New Zealand’s second contractionary event in the past 18 months.
New Zealand has returned negative GDP figures in four of the last five quarters.
Annual growth is currently running at an anaemic rate of just 0.6 per cent.
“Wholesale trade was the largest downwards driver this quarter, led by falls in grocery and liquor wholesaling; and machinery and equipment wholesaling,” Stats NZ’s Ruvani Ratnayake said.
“Retail trade activity also fell, driven by furniture, electrical, and hardware retailing; and food and beverage services.”
The results are even worse in a per capita context: with all five of the last quarters heading backwards.
In essence, New Zealand is curently being propped up by record migration, which hit a record peak of 141,000 in 2023, more than 100,000 above 2022.
Without that population growth to stimulate economic activity, New Zealand’s economic output would be further in reverse.