New Zealand Faces Severe Recession as Economic Conditions Worsen

Reported 3 days ago

New Zealand endured a more severe recession than anticipated in the second and third quarters of 2024, with GDP contracting by 1.0% and 1.5%, respectively. High interest rates severely impacted demand, leading to a decline in the local dollar and rising unemployment. Despite these challenges, forecasts suggest a recovery in 2025 as the Reserve Bank begins to lower interest rates. Economists expect the downturn may validate earlier rate cuts aimed at stimulating economic growth.

Source: YAHOO

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