New Zealand: Economy slips into recession, as impact of cyclones takes toll

According to official data released Thursday New Zealand's agriculture-driven economy has fallen into recession with a damaging cyclone fuelling a widespread downturn just months before national elections.January flooding in Auckland and destruction caused by Cyclone Gabrielle in February both weighed on the economy.Stats NZ signalled the economy had contracted 0.1 per cent in the first quarter, after a fall of 0.7 per cent at the end of 2022.Four months before the general election, centre-left finance minister Grant Robertson admitted that entering recession was "not a surprise.""We know 2023 is a challenging year as global growth slows, inflation has stayed higher for longer and the impacts of North Island weather events continue to disrupt households and businesses," he said.The consequences of extreme weather that hit the country in February and March, destroying several of New Zealand's important fruit and vegetable-growing regions and inflicting extensive damage to the road network, aggravated the economic crisis.The government estimates it will cost up to NZ$15 million (US$9 million) to mop up the damage caused by the extreme weather.This is New Zealand's first recession since 2020 when the pandemic shuttered borders and choked exports.With the economy shrinking, inflation hitting 6.7 per cent and an October 14 election approaching, the centre-right opposition was quick to point the blame at the government."Red lights are flashing for the New Zealand economy, which has shrunk even while inflation rages on," said opposition finance spokesperson Nicola Willis.Agriculture, manufacturing, transport and services all saw declines.With inputs from agenciesRead all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.