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According to a report from Statistics New Zealand, inflation in New Zealand has slowed more than expected in the second quarter, reaching its weakest point in three years. The annual inflation rate dropped to 3.3% from 4% in the first quarter, lower than the predicted 3.4% by economists and the Reserve Bank's forecast of 3.6%. The report also revealed that consumer prices increased by 0.4% from the previous quarter, falling short of economists' estimate of 0.5%. The Reserve Bank of New Zealand recently held the Official Cash Rate at 5.5%, but expressed concerns about a deepening economic downturn and the possibility of rate cuts in the near future. [Extracted from the article]

New Zealand's economy has emerged from recession with a modest expansion in the first quarter, according to Statistics New Zealand. Gross domestic product (GDP) grew by 0.2% from the previous quarter, beating economists' expectations. However, the economy is still facing challenges, including high borrowing costs that are limiting consumer spending and business investment. The Reserve Bank of New Zealand has indicated that it does not plan to lower interest rates until the second half of 2025. Despite the recent growth, the economy has only grown in two of the past six quarters. [Extracted from the article]

New Zealand's economy has experienced modest growth in the first quarter, marking its exit from a recession. Gross domestic product (GDP) increased by 0.2% compared to the previous quarter, surpassing economists' expectations. However, the economy continues to face challenges, including high borrowing costs that are limiting consumer spending and business investment. Despite these challenges, strong immigration and a recovery in tourism are contributing to economic activity. The New Zealand dollar also saw a slight increase following the release of the report. [Extracted from the article]

New Zealand's economy is predicted to have just barely emerged from recession in the first quarter of the year, with a growth rate of only 0.1%. The Reserve Bank has kept monetary policy restrictive in order to control demand and inflation, but the slight expansion may be due to a recovery in tourism and high levels of immigration. However, the economy is expected to remain subdued for some time, with consumer confidence and business sales and profits declining. Economists suggest that the Reserve Bank may need to cut interest rates sooner than previously projected. [Extracted from the article]

New Zealand's history of inflation, recessions, and unemployment can provide insights into the relationship between inflation and recessions. While there is a debate over whether reducing inflation requires a recession, New Zealand's economic history suggests that a fall in inflation does not always lead to a recession. The country has experienced eight disinflation episodes since 1961, and only four of them were associated with recessions. However, the current global events, such as unrest in the Middle East and the war in Ukraine, may pose challenges for New Zealand in avoiding a recession while reducing inflation. [Extracted from the article]

New Zealand is currently in a recession, with GDP falling in the second half of last year. The new government can blame the previous one for the economic downturn, but this may not satisfy the public for long. The recession also means reduced tax revenues, which will require difficult fiscal decisions to be made in the upcoming budget. The government is facing pressure to honor coalition agreements and stimulate innovation and skills, but there are concerns about their lack of policies in these areas. The reinstatement of tax deductibility for rental properties has been criticized for not contributing to fiscal prudence, productivity, or innovation. The government's economic credibility and political viability are in question, and much will depend on the upcoming budget to turn things around. [Extracted from the article]

New Zealand's economy unexpectedly contracted in the final quarter of last year, confirming a recession. Gross domestic product (GDP) dropped 0.1% in the fourth quarter, worse than economists' expectations of 0.1% growth. The economy has entered a double-dip recession due to the Reserve Bank's aggressive monetary policy tightening. This weak growth may prompt policymakers to consider interest rate cuts earlier than anticipated. The main drivers of the contraction were declines in manufacturing, retailing, and machinery sales. GDP per capita also declined for the fifth consecutive quarter. [Extracted from the article]

New Zealand's economy unexpectedly contracted in the last quarter of the previous year, resulting in a confirmed recession. This decline is attributed to high interest rates, which have dampened consumer spending and investment. The country's gross domestic product (GDP) dropped by 0.1% in the fourth quarter, following a 0.3% decline in the previous three months. The Reserve Bank's aggressive monetary policy tightening, aimed at controlling inflation, has contributed to the economic slowdown. This weak growth may prompt policymakers to consider implementing rate cuts earlier than anticipated. [Extracted from the article]

According to the Motor Industry Association (MIA), new vehicle registrations in New Zealand experienced a significant decline in May 2024, particularly in the light passenger segment. This decline has been ongoing and is reflective of the economic recession. May 2024 saw a 23.7% decrease in registrations compared to May 2023 and a 23.6% decrease compared to May 2022. Toyota, Ford, and Mitsubishi were the top three market leaders, and the top three segments were pick-up/chassis cab, SUV Medium, and SUV Compact. The top-selling light passenger models were the Toyota RAV4, Mitsubishi ASX, and Suzuki Swift. Light commercial registrations remained steady, while heavy commercial registrations saw an increase. [Extracted from the article]

(Bloomberg) -- New Zealand's economy probably emerged from a shallow recession in the second quarter as a surge in immigration fueled growth. New Zealand's population grew an estimated 0.6% in the second quarter, outstripping economists' median GDP expectation and suggesting per capita growth may have slowed for a third straight quarter. [Extracted from the article]

(Bloomberg) -- New Zealand's central bank and Treasury Department are at odds over whether the nation needs another recession to get inflation under control. The RBNZ projects inflation will slow to 2.7% by the third quarter of 2024, from 6% currently, assuming the economy contracts again. [Extracted from the article]

The article discusses natural environment and political state of New Zealand and problems faced by the nation. Topics discussed include state of the natural environment with an estimated 80,000 endemic species of the nation; modernity, industrialization and affluence of the nation brought by the Europeans in 1769 onwards, rapid decline in biodiversity and extinction of indigenous plants and slowing economy and inequality faced by the nation.

The Reserve Bank last month projected a recession starting in the second quarter this year, but that was before the first-quarter GDP report. "Cost and inflation pressures have now crested the peak and are receding, and interest rates have probably peaked too", said Jones. (Bloomberg) -- New Zealand may emerge from recession in the current quarter but it will quickly stumble into another one. [Extracted from the article]

Governor Adrian Orr has been arguably the most willing of his peers to accept that a recession may be needed to cool inflation, with the RBNZ forecasting one would come at a time when most other major central bankers focused on the idea that the narrow path to a soft landing remained possible. (Bloomberg) -- New Zealand led the world in raising interest rates to combat the post-pandemic inflation wave. [Extracted from the article]

(Bloomberg) -- New Zealand's economy contracted in the first quarter, confirming that a recession began in the final three months of last year and sending the local currency lower. "Our economy is smaller than forecast by the RBNZ and Treasury", said Jarrod Kerr, chief economist at Kiwibank in Auckland. [Extracted from the article]

(Bloomberg) -- New Zealand's economy contracted for a second consecutive quarter in the first three months of the year, confirming a recession. New Zealand's dollar fell after the GDP release. [Extracted from the article]

(Bloomberg) -- New Zealand's economy may have contracted for a second consecutive quarter, putting it into recession sooner than the central bank expected. Gross domestic product fell 0.1% in the first quarter from the fourth, when it dropped 0.6%, according to the median forecast in a Bloomberg survey of economists. [Extracted from the article]

(Bloomberg) -- New Zealand's central bank raised interest rates by a quarter-percentage point and unexpectedly signaled that no further policy tightening would be needed to tame inflation, sending the nation's currency tumbling. "The RBNZ no longer seems to believe that a marked economic slowdown is necessary in order to get inflation down", said Sharon Zollner, chief New Zealand economist at ANZ Bank in Auckland. "The committee is confident that with interest rates remaining at a restrictive level for some time, consumer price inflation will return to within its target range of 1-3% per annum", the RBNZ said. [Extracted from the article]

The RBNZ will publish fresh forecasts next week as surging immigration prompts some economists to raise their predictions for how high interest rates will go. (Bloomberg) -- New Zealand will avoid a recession as more tourist arrivals, cyclone recovery and government spending support growth, according to Treasury Department forecasts. [Extracted from the article]

(Bloomberg) -- New Zealand's central bank unexpectedly raised interest rates by 50 basis points, maintaining its pace of tightening to tame inflation even as the economy heads toward recession. "The Committee agreed that the OCR needs to be at a level that will reduce inflation and inflation expectations to within the target range over the medium term", the RBNZ said in a statement. [Extracted from the article]

(Bloomberg) -- New Zealand's economy contracted by more than expected in the final three months of 2022, putting it on the brink of recession and prompting investors to lower bets on the pace of further interest-rate hikes. Should the economy fail to expand in the current cyclone-hit quarter, as some economists forecast, it would have entered a recession six months earlier than the Reserve Bank predicted. [Extracted from the article]

Most economists predict a 25 basis-point hike at its next review on April 5 and investors have pared bets on the RBNZ delivering a 50-point hike. (Bloomberg) -- New Zealand's economy contracted by more than expected in the final three months of 2022, putting the nation on the brink of recession and sending the currency lower. [Extracted from the article]

Should it fail to expand in the current cyclone-hit quarter, as some economists forecast, the country would have entered a recession six months earlier than the Reserve Bank predicted. Most economists predict a 25-point hike at its next review on April 5 and investors have pared bets on the RBNZ delivering a 50-point hike. (Bloomberg) -- New Zealand's economy shrank by more than expected in the fourth quarter, leaving the nation on the brink of recession. [Extracted from the article]

New Zealand's economy has been surprisingly resilient in the face of aggressive rate hikes from the RBNZ, growing 2% - more than twice as much as expected - in the third quarter. Bank of New Zealand senior economist Craig Ebert cautioned against reading too much into the possibility of the economy already being in recession, but said the notion that activity is undershooting RBNZ expectations needs to be taken seriously. A weak GDP number on Thursday "won't necessarily swing the RBNZ off course from delivering at least another 50 basis points of OCR increases", said ASB chief economist Nick Tuffley. [Extracted from the article]

Still, many companies are having to absorb costs and face declining profits, Leung said. Ongoing inflation pressure will need to be taken into account by the RBNZ at its Feb. 22 meeting, but so will the prospect of weaker demand, said NZIER principal economist Christina Leung, adding that a 50-point hike may be sufficient. (Bloomberg) -- New Zealand business confidence slumped to the lowest since the 1970s in the fourth quarter as the prospect of higher interest rates and weaker demand fuel fears of a sharper-than-expected recession. [Extracted from the article]

(Bloomberg) -- New Zealand business confidence slumped to a record low in December after the central bank delivered an unprecedented jumbo interest-rate hike and predicted the economy will enter recession next year. "The Reserve Bank certainly got the shock value we suspect it was aiming for at its November Monetary Policy Statement", said ANZ New Zealand Senior Economist Miles Workman. [Extracted from the article]

(Bloomberg) -- New Zealand faces a recession next year amid a global economic slowdown and as the central bank raises interest rates to curb inflation, the government said. Mortgage Rates The Treasury said household incomes are set to come under pressure from rising mortgage interest rates and higher unemployment. [Extracted from the article]

Speaking later at the Bloomberg Address, Robertson said while the government could try to achieve a surplus earlier, a sharp correction would do "significant damage to New Zealand." (Bloomberg) -- New Zealand can avoid a recession even in the face of a global slowdown and as the nation's central bank continues to aggressively tightens policy to slow inflation, Deputy Prime Minister Grant Robertson said. [Extracted from the article]

(Bloomberg) -- New Zealand can avoid a recession during the central bank's rapid policy tightening to slow inflation as its economy remains resilient, Deputy Prime Minister Grant Robertson said. Robertson, who is also the nation's finance minister, said the economy's No. 1 issue remains labor shortages, as is the case in a number of developed nations. [Extracted from the article]