New Zealand Enters Second Recession in 18 Months Amid Persistent Economic Contraction

• New Zealand has entered its second recession in 18 months as the economy contracted 0.1% in the December 2023 quarter • This follows a 0.3% contraction in the previous quarter, meeting the definition of a technical recession • New Zealand's economy has contracted in 4 of the last 5 quarters and has a stagnant 0.6% annual growth rate • Population growth from record migration levels has propped up the economy somewhat • The government is planning budget cuts including reducing the number of government workers due to the economic conditions