NZ Economy Shrinks Further, but Narrowly Avoids a Recession

The contraction was better than predicted by the Reserve Bank of New Zealand, which had forecast a fall of 0.5 percent.

A local buys vegetables at the Matakana Famers Market near Auckland, New Zealand. Small-scale farmers and food producers worry that a proposed Food Bill will impose requirements too costly and complicated for them to stay in business. Phil Walter/Getty Images

New Zealand’s gross domestic product (GDP) fell 0.2 percent in the June 2024 quarter, allowing the country to narrowly avoid a technical recession following a downward revision to the March quarter.

The Reserve Bank of New Zealand (RBNZ) had predicted a contraction of 0.5 percent, while Westpac had it at 0.4 percent and ANZ proved overly optimistic with its forecast of a 0.1 percent fall.