NZ Economy Contracts, Country Officially in a Recession

Almost every sector of the economy shrank during the last quarter, despite record migration and population growth.

AUCKLAND, NEW ZEALAND - AUGUST 07: In this photo illustration job vacancies are displayed in the newspaper on August 7, 2009 in Auckland, New Zealand. New Zealand's unempoyment rate, which has increased in the past six consectutive quarters, has hit a nine-year high, rising to six percent in the three months to June. Photo Illustration by Sandra Mu/Getty Images

New Zealand has officially entered a recession—defined as two successive quarters in which the economy contracts—as GDP fell 0.1 percent in the December 2023 quarter when compared with the September quarter, which also shrank by 0.3 percent.

This comes despite the country experiencing record levels of migration—130,000 in the year to January—and population growth.