New Zealand Treasury Sees Deep Economic Contraction in 2Q
New Zealand–The expected contraction of New Zealand’s economy during the April-June quarter may become the deepest the country has ever experienced, the Treasury department said Thursday.
The government’s key economic policy department said a national lockdown to curtail the spread of the new coronavirus will have an “unprecedented impact” on economic activity.
“It is becoming more likely that New Zealand will see a deeper economic contraction in the June quarter than we have seen in our recorded history,” Treasury said.
It didn’t provide a specific forecast. Economists at the country’s main banks have forecast the economy to contract 10% or more in the second quarter of 2020.
Treasury said some industries will bounce back quickly, but those with an international focus could take years to recover.