Due to covid Shadow the New Zealand economy shrank in the first quarter, it is performing worse than the central bank. Economists have forecast that New Zealand is going to suffer a surge due to Covid-19 infections.
It is observed that there is a 0.2 percent fall in gross domestic product in the three months to March followed by a 3.1 percent rise in the December 2021 quarter.
It is also observed that 0.3 percent of average growth for other countries in the Organization for Economic Cooperation and Development that have already reported for the same period.
The New Zealand central bank, in its monetary policy statement of May, predicted a modest rise, but all economists had forecast a flat result.
The slump in economic activity of New Zealand came in the quarter marked by arrival of the omicron variant of Covid-19 in the community, states New Zealand official agency.
Finance Minister of New Zealand Mr. Grant Robertson said the decline reflected a volatile global situation. Adding that the relaxing of border restrictions and influx of skilled workers and the tourists will help in rebuilding the economy through business.
However, the opposition ACT party said that New Zealand was halfway down the road to recession. Which is technically two consecutive quarters of falling GDP.