Thursday, 17 September 2020 11:21

COVID-19: Record GDP fall, ag sector suffers smallest drop

Written by  Staff Reporters
The quarterly GDP fall is the largest recorded since the current series began in 1987. The quarterly GDP fall is the largest recorded since the current series began in 1987.

Agriculture has kept losses to a minimum as New Zealand reported its largest ever GDP drop on record.

Gross domestic product (GDP) fell by 12.2% in the June 2020 quarter, Stats NZ announced this morning.

The quarterly fall is the largest recorded since the current series began in 1987.

The fall is comparable to many other countries amid the pandemic; the GDP in the same quarter in Australia fell 7%, Canada 11.5%, Japan 7.9%, the United Kingdom 20.4%, and 9.1% in the United States.

Some industries were more affected than others by the border closure and alert levels restrictions in place during the June quarter.

Agriculture, forestry, and fishing recorded the smallest drop, falling just 2.2%.

Retail trade and accommodation and transport, postal, and warehousing recorded the largest drops, falling 25.2% and 38.7% respectively.

Financial and insurance services was the only industry that grew, with a 0.7% increase.

“Industries like retail, accommodation and restaurants, and transport saw significant declines in production because they were most directly affected by the international travel ban and strict nationwide lockdown,” said national accounts senior manager Paul Pascoe.

New Zealand started the June 2020 quarter in alert level 4 lockdown, reaching alert level 1 on 8 June 2020.

“While level 4 restrictions were in place for most of April, the gradual return to level 1 over the course of the quarter meant that businesses were able to open up again and many people returned to places of work,” said Pascoe.

Annually, GDP fell by 2.0%. This is the first annual decline since the March 2010 quarter.

More like this

Gaslight much?

OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts started after their disastrous Covid response; now trying to undermine the Covid inquiry to protect his own backside.

Sorry, not sorry

OPINION: Did former PM Jacinda Ardern get fawning reviews for her book?

Cows down

OPINION: It's not happening as fast as the greenies would like - they actually want all livestock other than Muscovy ducks and Tibetan Llamas to disappear entirely - but it is happening.

Featured

National

Machinery & Products

» Latest Print Issues Online

The Hound

Arable advocacy?

OPINION: Spare a thought for the arable farmer, squeezed on one side by soft global prices and on the other…

Gaslight much?

OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter