Gross domestic product (GDP) provides a snapshot of the performance of the economy. Economic activity, as measured by gross domestic product (GDP), was down 12.2% in the June 2020 quarter. This is the largest quarterly decline in GDP on record. On an annual basis, GDP declined 2% over the year ended June 2020.
Key Facts in the Jun 2020 quarter:
- New Zealand economy declined 12.2%, the largest decline on record
- service industries fell 10.9%
- primary industries were down 8.7%
- goods producing industries fell 16.3%
- GDP per capita fell 12.6%
- real gross disposable national income was down 12.3%
- annual GDP in the year to June 2020 declined by 2%.
Impact of Covid-19
New Zealand started the June 2020 quarter in alert level 4 lockdown, with strict restrictions on the activities of both households and businesses. As a result, many parts of the economy were not able to operate at a normal or near normal, level of capacity during this period. Restrictions gradually eased through the June 2020 quarter, with alert level 3 in place from 27 April, alert level 2 from 13 May, and alert level 1 in place from 8 June 2020. New Zealand’s border closed to international travellers on 19 March 2020 and remained closed throughout the June 2020 quarter.
Source: New Zealand Stats
Last updated: 17 Sep 2020, 10:45am
General Information Only
This information is general information only and does not take account of your individual investment objectives or financial situation. United Finance encourages all customers to seek independent financial advice prior to making decisions.