قالب وردپرس درنا توس
Home / World / Covid pushes New Zealand into its worst recession in years

Covid pushes New Zealand into its worst recession in years



New Zealand shopkeeper with Covi-19 protective shield and face mask.Image copyright
Getty Images

After responding to the widely acclaimed drastic measures against the Covid-19 pandemic, New Zealand is in the midst of its worst recession in decades.

Due to the blockade and border blockade, the country̵

7;s GDP shrank by 12.2% between April and June.

This is New Zealand’s first recession since the global financial crisis and the worst since the beginning of the current measurement system in 1987.

But the government hopes that its pandemic response will lead to a rapid recovery.

This country with a population of nearly 5 million was briefly declared virus-free. Although there are still a few cases, only 25 people have died.

The economy is likely to be the key issue in the general election next month. After the unexpected surge in Covid-19 cases in August, the economy was delayed.

Statistics New Zealand spokesperson Paul Pascoe (Paul Pascoe) said that the measures implemented since March 19 have had a huge impact on certain economic sectors.

He said: “The output of industries such as retail, accommodation, restaurants and transportation has fallen sharply because they are most directly affected by the international travel ban and strict nationwide blockade.”

  • How can New Zealand get Covid-19 for free?
  • New Zealand: Jacinda Ardern delays election due to fear of coronavirus

The government of Prime Minister Jacinda Ardern stated that successfully suppressing the virus may help restore prospects.

Treasury Secretary Grant Robertson said that the GDP data was better than expected and said there will be a strong recovery in the future.

He said: “Early effort means that we can come back faster and stronger.”

Due to New Zealand’s strong reaction to the virus, some economists also predict that it will recover quickly.

Westpac senior economist Michael Gordon said: “We expect the record GDP decline in the June quarter to follow the record growth in the September quarter.”

But the U.S. Treasury Department’s forecasts released yesterday indicate that huge debts and continued disruption may delay full recovery.

The opposition National Party accused the government of lacking pragmatism, which made the impact more serious than it needed.

The rate of decline in New Zealand was much greater than that in neighboring Australia, and the degree of lock-in in neighboring Australia was less.

But Victoria faces a second blockade, which is likely to put pressure on Australia’s economic recovery.


Source link