Finance Minister Grant Robertson said GDP statistics showing the largest decline in quarterly GDP since the start of modern records in 1987 were better than forecast.
Accounts from Stats NZ on Thursday showed that the economy contracted 12.2 percent in the June quarter.
This result was better than the Treasury forecast of 16 percent issued [on Wednesday] and at the bottom end of other commenters’ expectations, Robertson said.
Ever since the Covid-19 started shaking the New Zealand economy, forecasters have consistently collected their predictions of how bad the economic effects of the crisis would be.
In May, the Treasury feared the economy would shrink by 23.5 percent this quarter. On Wednesday, it revised that forecast to 16 percent.
* 2020 Election: Judith Collins fears brain drain in Australia following Covid-19 economic shock
* Here comes the biggest quarterly New Zealand GDP drop ever
* Tell us the money: Politicians are making big spending promises, but are they all accumulating?
* ACT launches debt cut-off calculator as other parties reach billion-dollar spending promises
While the figure was much better than feared, it was still far from the worst quarterly contraction in New Zealand recorded history, according to Stats NZ.
The 12.2 per cent drop in quarterly GDP is by far the largest recorded in New Zealand, said Paul Pascoe, senior account manager at Stats NZs.
The next worst quarter was a 2.4 percent decline recorded in March 1991.
Robertson said GDP statistics caught the worst of the blockade, but lost some of the most positive data that emerged afterwards.
The June quarter covers almost all of the time when New Zealand was at Ready Level 4, to which we moved on March 26, so this result is not surprising. Going strong and early means we can come back faster and stronger. Economists expect the current September quarter to show record growth in the economy, he said.
We already know that we have returned since the end of June, with the New Zealand activity index in July, two percentage points higher than the same period last year. Electronic card spending was also 11 percent higher in July than the same period in 2019.
National leader Judith Collins and finance spokesman Paul Goldsmith said the economic pain was worse than it should have been.
Lack of pragmatism and a clear plan by Labor have made the economic hole deeper and the impact more difficult than it should have been, Goldsmith said.
This economic damage was recorded in three months, but will last for decades to come.
This is the deepest recession in living memory. It is already having a devastating impact on Kiwi families.
Robertson said one big reason why New Zealand was shrinking so much was the relative importance of sectors such as tourism and international education to the economy.
The contribution of a sector like tourism to New Zealand exports is about double that of the Australian economy, which shrinks 7 percent in the same quarter, Robertson said.
But Collins said the contraction was up to the fact that the government failed to heed economic advice.
After all, we need to focus absolutely on the economy, Collins said.
Obviously it is very clear that some of the decisions that are being made at the moment do not depend on health advice.
Collins said she would have done things differently.
We can say that we would not have stopped the construction industry, we would not have stopped working on the streets, we would not have stopped people building houses, she said.
Goldsmith acknowledged that economies across the globe were risking contractions, but did not say how much he thought a National government could have reduced the economic damage.
All you can do is do your best as a government, Goldsmith said.
ACT leader David Seymour said the figures showed the Government had taken an unbalanced approach to Covid-19.
She has been too busy lecturing New Zealand from the podium and losing money on dubious projects when she should have asked what economic activity can we safely afford? He said.
Seymour said parties should show restraint with spending.
We need to ask what can be done, rather than dictate from the podium what cannot be done, he said.
He said he was concerned that Australia’s relatively stronger performance meant there could be a brain drain when the borders reopened.
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]