NZ recession: Does the Government have a plan to stimulate and grow the economy? [Video]

OPINION

If you live in New Zealand and you’re feeling poorer, you’re not imagining it.

Stats NZ has revealed the economy was in recession over the second half of last year. GDP fell in the September and December quarters by –0.3 per cent and –0.1 per cent respectively.

Taking into account the record high levels of immigration, Westpac’s most recent economic bulletin estimated this may equate to GDP per person having fallen almost 4 per cent from its peak in mid-2022.

What does this mean politically, then, and what can the coalition do about it? Because the statistics are retrospective, the Government can blame the old one – but that won’t satisfy many people for much longer.

The National-led Government hasn’t enjoyed a post-election honeymoon. According to an IPSOS poll in late February, New Zealanders rated the coalition’s performance at 4.6 out of 10 – on par with the Labour government (4.7) just before the general election last October.