Economy suffers decline

A drop in motor vehicle parts and retailing has been cited as among the factors for New Zealand’s gross domestic product (GDP) falling by 0.2 per cent in the June  quarter, when compared with the first three months of the year.

It follows a 0.1 per cent rise in the March quarter, while GDP also fell 0.2 per cent over the year ended June 2024 compared with the previous 12 months, according to figures from Stats NZ.

Downwards drivers for the latest quarter-on-quarter result included the retail trade and accommodation industry’s production of GDP dropping 1.3 per cent over that period, led by declines for automotive sales, accommodation and food and beverage services.

Agriculture, forestry and fishing, and wholesale trade industries also fell.

Ruvani Ratnayake, national accounts industry and production senior manager at Stats NZ, says: “Activity in retail trade and wholesale trade has been in steady decline since 2022.”

GDP per capita fell by 0.5 per cent in the June quarter from the March quarter, with Stats NZ noting the last time this figure increased was in the September 2022 quarter.

On an annual basis, GDP per capita was down by 2.7 per cent.