New Zealand is facing its most tragic recession in decades after the measures following the Covid-19 pandemic were enforced and were also extensively praised. The GDP of the country shrank by 12.2% between April and June when the borders were sealed and the lockdown was announced. This is the worst of the economic situation in New Zealand after 1987.
The government is hopeful that the response of the pandemic will lead to recovery. The nation consisting of five million in population was declared virus-free earlier. They had a few cases but the death toll was at 25. The falling economy might be an issue in next month’s election which again went through a delay after COVID cases unexpectedly spiked in August. A decline in production in industries like retail, restaurants, and accommodations was reported which was directly impacted due to the travel band and the nationwide lockdown.
Jacinda Ardern, Prime Minister of New Zealand said that they have has success in suppressing the virus which will also help in the recovery of the situation. GDP numbers were also better as per Finance Minister, Grant Robertson. New Zealand’s response to the virus will also lead to a swift recovery as predicted by economists. The record-breaking decline in GDP in June will see a record-breaking rise in the month of September.
The government has said that there has been significant improvement in the country. Although the government faced backlashes from the opposing Nation party, they are on their path to emerging victorious.
