New Zealand Is In Worst Recession Due To Coronavirus
Rapid Recovery Is Expected After A Sudden Economic Recession
New Zealand is currently experiencing the worst recession of the country’s economy in decades, as the nation is following through with the strictest preventive measures in reactive response to the coronavirus pandemic.
New Zealand has been previously able to stop the further transmission of the deadly infection for around 102 days, during which no new active case was reported across the country. But after 22 cases were diagnosed in close vicinity, the country has now been suffering from its worst recession due to the implementation of stern preventive response against the COVID-19 pandemic.
Adverse effects of coronavirus pandemic on New Zealand’s economy
The GDP of New Zealand has decreased by 12.2% between the time duration from April till June, which is the worst recession of the economy in the past few decades. These severe aftereffects have been observed by the nation due to closure of the international border and nationwide lockdown implementation to prevent further outbreak of infection and loss of lives.
This worst recession being experienced by New Zealand is the first economic collapse since the global financial crisis in the year 1987, after which to prevent any future decline of economic stability, the ongoing system of management and measurements was implemented across the country.
The government of New Zealand has high hopes that the current rapid responsiveness against the coronavirus pandemic will lead to a swift recovery from its present worst recession. The country of New Zealand has more than 5 million residents across the island, but only 25 deaths have been recorded across the nation, and only a handful of active cases are left as they are undergoing treatment.
New Zealand’s elections are to be held next month, which has been postponed as they were previously scheduled to be conducted in the month of August. The economy of the country, along with its current worst recession, would be a key issue to be discussed in the upcoming days.
According to the spokesman for Stats NZ, Paul Pascoe, the preventive measures that had been in firm implementation since the virus was first diagnosed in the country have had some drastic effects on several sectors of the country’s economy, playing a major part in its ongoing worst recession.
The industrial sector, including retail sales, restaurants, and hotel accommodations, along with transport and travel, are some of the basic sectors to be directly affected due to international traveling ban and countrywide lockdown restrictions during the surge of the coronavirus pandemic in the country.
New Zealand’s Prime Minister’s response
New Zealand’s Prime Minister Jacinda Ardern stated that by suppressing the coronavirus pandemic from further spreading across the country, it would consequently help the recovery prospect of the economic recession being observed today. According to the Finance Minister Grant Robertson, the GDP numbers being observed are much better than they had previously expected for them to be, which clearly suggests a strong recovery phase in the country in the near future.
Some of the economists are also predicting the same outcome, which is a rapid recovery phase after this worst recession of economy the country is facing today.
It is being expected by the government that the record-breaking worst recession of GDP in the month of June would be followed by an immediate record-breaking ascent in the third quarter of this year. Prime Minister Jacinda Ardern also stated that the country is returning back towards its normal routine work while following the preventive measures along with social distancing, which is far more rapidly than any other country across the world.
Even though several restrictions have been applied recently, the return back to normal activity has been smooth, which is a much better transition as compared to Australia.