New Zealand Enters Recession as GDP Shrinks 1% in Q3

The economy contracts for two consecutive quarters, marking the steepest decline since the pandemic and raising calls for aggressive rate cuts.

New Zealand's GDP fell by 1.0% in the September quarter, exceeding forecasts of a 0.2% contraction, following a revised 1.1% decline in the June quarter.
The annual GDP decline of 1.5% is the sharpest since the pandemic, with GDP per capita falling even further by 2.1% over the same period.
Key sectors including manufacturing, utilities, and construction saw significant downturns, while household and government spending, investment, and exports also dropped.
The Reserve Bank of New Zealand has already cut rates by 125 basis points to 4.25% this year, with markets expecting further reductions to stabilize the economy.
Economic analysts attribute the recession to a combination of aggressive monetary tightening and reduced public spending under the new conservative government.