New Zealand Economy Enters Recession Following Interest Rate Increases

The New Zealand economy contracted 0.1% in Q1 2023, entering a technical recession.
The Reserve Bank of New Zealand raised interest rates 12 times to curb inflation, slowing the housing market and overall economy.
Extreme weather events also impacted economic activity in the country.
Annual growth in New Zealand slowed to 2.2% compared to 2.9% a year earlier.
While economists expect interest rates have peaked, further tightening may be needed if inflation persists above the central bank's target.