NEW ZEALAND SUFFERS WORST GDP DECLINE ON RECORD

New Zealand's gross domestic product (GDP) has suffered its largest fall on record as the economic impact of COVID-19 hit, the government's official data agency relayed to Deutsche Presse-Agentur (dpa).

The country's GDP fell 12.2 per cent in the three months ended June 30, the largest fall since comparable records began in 1987, Stats New Zealand said. Senior manager Paul Pascoe said the results showed a widespread drop in economic activity due to COVID-19 restrictions. New Zealand started the quarter in a strict lockdown, where all non-essential businesses were closed, which left many parts of the economy unable to operate normally. 

By June 8, the country had relaxed most restrictions, although the border remains closed to most people. 

"Industries like retail, accommodation and restaurants, and transport saw significant declines in production because they were most directly affected by the international travel ban and strict nationwide lockdown," Pascoe said. "Other industries, like food and beverage manufacturing, were essential services and fell much less." On an annual basis, GDP declined 2.0 per cent over the year ended June 30, 2020, according to the national statistics office.

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