New Zealand enters recession after a 12.2% drop in the second quarter

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New Zealand enters recession after a 12.2% drop in the second quarter







© Provided by Agencia EFE



Sydney (Australia), Sep 17 (EFE) .- New Zealand entered a technical recession falling 12.2% in the second quarter of 2020 as a result of the harsh restrictions imposed in the oceanic country by the COVID-19 pandemic , reveal this Wednesday the official data.

The New Zealand economy, which registered a 1.6% decline between January and March, thus accumulates two consecutive quarters with negative growth, thus entering a technical recession after 11 years of growth.

According to figures from New Zealand’s official statistical agency “Stats NZ”, construction decreased in the second quarter by 25.8% and manufacturing fell by 13%, while at the same time it decreased by 12%. 1% household spending.

Other sectors most affected are retail, hospitality and transport as a result of the confinement measures in New Zealand, one of the strictest in the world, imposed in March together with the closure of the borders when the country registered about 40 COVID-19 cases.

“While Level 4 (the top) restrictions were in place for most of April, the gradual return to Level 1 over the course of the (second) quarter meant that businesses were able to reopen and many people returned to their places. work, “said Paul Pascoe, national account manager for Stats NZ.

New Zealand, whose government has been applauded worldwide for its management in the face of COVID-19, returned to normality in June, but in mid-August reconfigured the 1.7 million inhabitants of Auckland, the most populous city in the country , when detecting an outbreak of the virus with local transmission after reaching 102 days without contagion within its borders.

Authorities still maintain restrictions in Auckland, albeit at a lower level limiting meetings to ten people and requiring the use of masks on public transport, measures that are expected to be relaxed next week.

New Zealand has accumulated 1,451 infections since the start of the pandemic, including 25 deaths and 79 active cases.

(c) EFE Agency

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