The impact of the recession is now visible from Europe to the continent of Australia. New Zealand's agriculture-based economy is now in the grip of recession, while a few weeks ago Germany also talked about recession.
By the end of the year 2023, will there be a worldwide economic recession? No one can make an accurate estimate about this, but recently big economies like Britain and Germany have accepted that they are in recession. Now its effect has reached the continent of Australia and New Zealand has said that it is in the grip of recession.
The economy of New Zealand is mainly based on agriculture. Government figures released on Thursday show that New Zealand's economy is in recession. A recent cyclone has caused a lot of damage here. This is the first time since 2020 that New Zealand's economy has fallen prey to recession.
Economy victim of recession before elections
New Zealand's government data shows that in the first quarter of the year 2023 (January-March) has fallen by 0.1 percent. While it saw a decline of 0.7 percent in the previous October-December quarter.
There is less than 4 months left for the general elections in New Zealand. In such a situation, the recession of the economy has become a headache for the local government. Although the country's Finance Minister Grant Robertson has accepted the 'recession', he did not say that it was surprising at all.
Cyclone and flood made the year of 2023 difficult
The Finance Minister says that 2023 is a challenging year. The growth rate is lying soft all over the world, inflation has been on the rise for a long time. While the seasonal hit has affected the common life and business of the people. In January this year, the Auckland area faced heavy flooding. Whereas in February, the Gabriella cyclone also made an impact.
Due to this, the burden on the economy of New Zealand has increased a lot. The government estimates that both these natural calamities have put a burden of 15 million New Zealand dollars on its coffers.
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