New Zealand economy at pre-pandemic levels

Global Economy

Economy (TT)

New Zealand, which remained in lockdown for much of the pandemic, is showing growth. “The economy is firmly back to pre-pandemic levels,” says Jarrod Kerr, chief financial officer of Kiwibank.

While Sweden's approach to opening up during the beginning of the pandemic was seen as extreme in some quarters, New Zealand's approach ended up on the complete opposite end of the scale.

The country has closed its borders and locked down society. By and large, the spread has stopped. There have been no local cases recently. Out of a population of 5 million, there have been 26 coronavirus-related deaths during the pandemic.

Higher than expected growth

The economy does not appear to have been particularly badly hit. Despite a brief recession at this time last year, strong domestic demand has offset the decline in tourism.

In the first quarter of this year, seasonally adjusted GDP growth was 1.6 percent, higher than the -1.0 percent decline in the last quarter of last year, and above analysts' expectations of 0.5 percent.

Strong economy

Finance Minister Grant Robertson describes the economy as strong.

“Our economic recovery plan has kept people working and supported businesses, while continued targeted stimulus investment, coupled with strong exports of our products, is putting money in households’ pockets,” he said in a statement. statement.

He points out that growth in New Zealand is stronger than growth in the United States, Canada, Japan and the United Kingdom.

“New Zealand continues to outperform the countries we compare ourselves to,” he says.

Jarrod Kerr, of Kiwi Bank, says large-scale housebuilding is driving the construction sector, which rose 6.6 per cent during the quarter.

“We are spending and building ourselves up to get out of the hole created by Covid,” he says, according to AFP.

Gustav Sjoholm / TT