Friday, June 27, 2008

Figures confirm NZ economy going down

Data released today by Statistics New Zealand (SNZ) showed the economy shrank by 0.3 percent in the first quarter of 2008, further raising fears New Zealand is heading for a recession. (A recession defined as two quarters in a row of economic decline.)

In its announcement of gross domestic product figures, SNZ said the agriculture and construction industries, which fell 5.6 percent and 5.2 percent respectively, were the main contributors to the decline in the first three months of the year.

Household consumption spending fell 0.4 percent, in the first decrease since the June 2004 quarter, SNZ said.

Adding to the pessimism, Bank of New Zealand chief economist Tony Alexander said the BNZ expects the June-quarter figure to be slightly worse than that for the first three months of 2008.

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