After responding to the widely acclaimed strict measures to deal with the Covid-1
Due to the blockade and border blockade, the country’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 for 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.”
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The government of Prime Minister Jacinda Ardern stated that successfully suppressing the virus may help restore prospects.
Treasury Secretary Grant Robertson (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 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 debt 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 decline in New Zealand was much larger than that in neighboring Australia, and the lock-in degree in neighboring Australia was lighter.
But Victoria faces a second blockade, which is likely to put pressure on Australia’s economic recovery.