New Zealand economy lurches sharply into reverse

Thursday, July 3, 2008 :Economic data released in recent weeks confirms that the New Zealand economy swung rapidly into reverse during the opening months of the year. Gross Domestic Product shrank 0.3 percent in the March quarter, with economists predicting another fall of at least 0.5 percent for the June quarter. This would mean the country is officially in recession. Agriculture and construction were the main contributors to the decline. Primary industry, which accounts for over 50 percent of New Zealands export trade, recorded its largest quarterly decline in a decadedown 4.1 percentdespite booming returns in dairy farming. A 5.2 percent fall in construction and 1.2 percent fall in manufacturing were responsible for a total 1.9 percent decline in the goods producing sectorthe largest fall since June 2000. The rapid onset... [read full story]