What’s at stake: New Zealand faces critical economic challenges as it navigates through a double-dip recession, balancing the need for inflation control with sustainable growth.
Background: The deliberate economic slowdown by the Reserve Bank, in response to an overheated economy and soaring inflation, has led to a notable GDP contraction amid rapid population growth.
Key players: Reserve Bank of New Zealand, Michael Gordon, wholesale and retail trade sectors.
As New Zealand confirmed its slide into a double-dip recession, with GDP falling by 0.1% in the December 2023 quarter following a 0.3% decrease previously, the spotlight intensified on the Reserve Bank's aggressive rate hikes and their ramifications on the economy.
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Key points
What’s at stake: New Zealand faces critical economic challenges as it navigates through a double-dip recession, balancing the need for inflation control with sustainable growth.
Background: The deliberate economic slowdown by the Reserve Bank, in response to an overheated economy and soaring inflation, has led to a notable GDP contraction amid rapid population growth.
Key players: Reserve Bank of New Zealand, Michael Gordon, wholesale and retail trade sectors.
