NZ’s latest GDP figures reveal remarkable recovery

Photo by Partha Narasimhan on Unsplash

By Professor Christoph Schumacher

Today, the official September 2020 quarter GDP figures were released. After the substantial drop of GDP values due to the COVID-19 induced lockdown, everybody was anxious to see if and how well the economy is recovering. Early indications are that we were doing better than expected. Instead of travelling overseas, New Zealanders were spending more domestically on housing, renovations, consumer goods or national holidays. Official values suggest that our economy grew by 14 percent during the last quarter. This is a remarkable recovery and slightly better than our GDPLive prediction of 13 percent. Annually, economic growth is at -2.2 percent which again, is less severe than anticipated (we predicted -3.2 percent). Overall, the Q3,2020 figures are encouraging, however, the upturn could be severely impacted by the shortage of stock and supplies that we are currently experiencing.