New Zealand Economy Falls Into Recession

New Zealand's GDP has fallen by 0.1%, leading to a technical recession. Despite predictions of modest growth, the economy contracted, influenced by factors like Cyclone Gabrielle. The Reserve Bank of New Zealand (RBNZ) has raised interest rates significantly, impacting the economy. While the stock market remains stable, the Kiwi dollar has weakened. Optimism persists due to low unemployment and strong tourism. The RBNZ plans no further rate cuts, awaiting the impact of previous hikes. Political and economic developments, including an upcoming election and inflation data, will shape future policies.

What was the quarter-on-quarter GDP change that led New Zealand into a technical recession?

• 0.1% increase

• 0.5% increase

• 0.5% decline

• 0.1% decline

Which natural disaster is mentioned as having impacted New Zealand's economy?

• Tornado Christchurch

• Cyclone Gabrielle

• Flood Auckland

• Earthquake Wellington

What is one of the positive factors mentioned that could help New Zealand's economy recover?

• High unemployment

• Strong immigration

• Weak tourism

• Decreasing exports

What decision did the RBNZ make regarding interest rates?

• To eliminate rates

• To increase rates further

• To decrease rates

• To maintain current rates

When is the next RBNZ meeting scheduled, according to the transcript?

• September 5

• June 10

• August 15

• July 12