New Zealand GDP takes biggest slide in 29 years due to COVID-19

New Zealand officially entered a recession for first time in 10 years after Gross Domestic Product (GDP) shrank by 1.6 percent in first quarter of financial year. Stats New Zealand on June 18 said that contraction in GDP is largest in 29 years and blamed it on coronavirus restrictions that impacted ecomic activity in country. According to report, service industries contributed most in contraction, making it almost half of overall drop in GDP. 

Re: Pakistan Sets Meagre 2.1% GDP Growth Target In Fiscal Budget, Defence Spending Up By 12%

" 1.6 percent fall surpassed quarterly falls during global financial crisis in late 2000s. It is largest quarterly fall since 2.4 percent decline in March 1991 quarter. Industries related to international travel, such as accommodation and transport, began to feel effects of COVID-19 earlier in quarter, with activity dropping significantly once borders closed on 19 March,” national accounts senior manr Paul Pascoe said.

Re: UK Airlines Launch Legal Action Against Quarantine Policy As GDP Shrinks 20 Percent

Most affected industries

hospitality industry (accommodation, restaurants, and bars) was among most affected industries, falling 7.8 per cent, as tourism fell after border was closed to slow spre of COVID-19. construction industry and warehousing industry recorded 4.1 per cent and 5.2 per cent fall respectively. Stats New Zealand report said that parts of transport industry, particularly air transport, which recorded a drop due to restrictions on both domestic and international travel.

Re: MEA Rebuts Imran Khan's Cash Transfer 'help', Says 'India's Stimulus Bigger Than Pak GDP'

Annual GDP growth for year ended March 2020 dropped to 1.5 per cent, compared with a 3.1 per cent growth in year ended March 2019. Annual growth in GDP has been generally slowing since December 2016 when it was 3.9 per cent. As New Zealand recorded a 1.6 per cent decline in ecomic activity, in same period, re was a 2.1 per cent decline in Cana, a 0.3 per cent fall in Australia, a 0.6 per cent decline in Japan, a 2.0 per cent decline in United Kingdom, and a 1.3 per cent decline in United States, Stats NZ said.

Re: 'Fall In GDP Is A Telling Commentary On Ecomic Manment Of BJP Govt': Chidambaram