New Zealand’s government celebrates revised figures showing no recession earlier this year, boosting its prospects before the upcoming elections on October 14.
According to Stats NZ, the country narrowly escaped a recession in the first quarter of 2023. The revised data revealed that the quarterly economic output remained flat from January to March, contradicting the earlier estimate of a 0.1 percent contraction. The economy had already experienced a contraction in the previous quarter of 2022.
In the latest quarter ending on June 30, the economy experienced a growth of 0.9 percent compared to the previous quarter, as reported by the official statistician.
Finance Minister Grant Robertson, from the center-left Labor government, commented, “The New Zealand economy is exceeding expectations with no recession earlier this year.” The Labor government is behind the conservative National Party in the polls, in part due to concerns about high inflation.
Robertson added, “The economy is turning a corner and demonstrating resilience in the face of global challenges and extreme weather events, such as Cyclone Gabrielle in February, which cost up to NZ$15 billion (US$9 billion) for cleanup efforts.”
Stats NZ highlighted that business services were the main driver of growth in the second quarter.
In response to the revised figures, Nicola Willis, the finance spokesperson for the National Party, criticized the government for being “out of touch” with the financial struggles of everyday New Zealanders after six years of what she called “economic mismanagement” by the Labor Party.
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