New Zealand records largest GDP fall on record

Wellington: New Zealand’s gross domestic product (GDP) has suffered its largest fall on record as the economic impact of Covid-19 hit, the government’s official data agency reported on Thursday.


The country’s GDP fell 12.2 percent in the three months ended June 30, the largest fall since comparable records began in 1987, Stats New Zealand said, according to Deutsche press agency (dpa).


Senior manager Paul Pascoe said the results showed a widespread drop in economic activity due to Covid-19 restrictions.


New Zealand started the quarter in a strict lockdown, where all non-essential businesses were closed, which left many parts of the economy unable to operate normally.


By June 8, the country had relaxed most restrictions, although the border remains closed to most people.


Some industries were more affected than others by the country’s border closure and restrictions, Pascoe said.


“Industries like retail, accommodation and restaurants, and transport saw significant declines in production because they were most directly affected by the international travel ban and strict nationwide lockdown,” Pascoe said.


“Other industries, like food and beverage manufacturing, were essential services and fell much less.”


On an annual basis, GDP declined 2.0 percent over the year ended June30, 2020, according to the national statistics office.



Source: Bahrain News Agency