NZ in deepest recession as Q2 GDP shrinks

The Reserve Bank of New Zealand had forecast a quarterly and annual GDP decline of 14% in its August statement.

WELLINGTON: New Zealand fell into its deepest economic slump on record in the second quarter as its battle against the coronavirus pandemic paralysed business activity, official data showed on Thursday.

Gross domestic product contracted a seasonally adjusted 12.2% quarter-on-quarter, its sharpest quarterly contraction on record and largely in line with forecasts of a 12.8% decline from economists polled by Reuters. GDP fell 12.4% year-on-year.