New Zealand’s economy contracted for a second consecutive quarter in the first three months of the year, confirming a recession.
Gross domestic product fell 0.1% from the prior three months, when it dropped an upwardly revised 0.7%, Statistics New Zealand said Thursday in Wellington. Economists expected a 0.1% decline. From a year earlier, the economy grew 2.2%, less than the 2.6% median forecast.
The economy is cooling after the central bank hiked interest rates at a record pace to regain control of inflation, while first-quarter activity was also hampered by a damaging cyclone in February. Confirmation of a recession comes four months before a general election is due in which cost-of-living pressures and the economic downturn are sure to feature.
New Zealand’s dollar fell after the GDP release. It bought 61.91 US cents at 10:50 a.m. in Wellington from 62.18 cents beforehand.
--With assistance from Ainsley Thomson.
