New Zealand Economy Shrinks 0.9% in Most Recent Quarter

9 HOURS AGO·UPDATED 9 HOURS AGO

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Above: The skyline of the Auckland Central Business District in Auckland, New Zealand. Image copyright: Didier Marti/Getty Images

The Spin

Pro-government narrative

This downturn stems directly from the international turmoil and uncertainty caused by U.S. trade policy, rather than any decision-making by the New Zealand government. Before these external shocks, the economy had been growing strongly for six months, and signs already point to its recovery as interest rates fall and mortgage lending increases.

New Zealand Government

Government-critical narrative

This latest economic contraction reveals the government's fundamental mismanagement of the economy and the emptiness of Luxon’s promises to fix its foundations. While Australia's economy grew by 0.6% over the same period, New Zealand is heading backwards — with thousands losing jobs, businesses struggling to survive and record numbers of residents fleeing overseas.

New Zealand Labour Party