5043 (2024). Hon Barbara Edmonds to the Minister of Finance

5043 (2024). Hon Barbara Edmonds to the Minister of Finance: Does she stand by her statement “But the reality is, for many New Zealanders it feels like a recession”, and if so, on what advice, by title and date, was this statement made?

Hon Nicola Willis: Yes. The Treasury reported in its GDP review on 21 March 2024 that "GDP contracts for the fifth time in two years by a modest 0.1% with underlying data reflecting an economy in the midst of a severe economic slowdown." Furthermore, the Treasury reported in its Fortnightly Economic Update on 28 March 2024 that "GDP data confirmed a shallow recession in the second half of 2023." In addition, I regularly speak with everyday New Zealanders about their views and experiences with the NZ economy. Many of them tell me that the combination of high inflation and interest rates that began under the last Government and was prolonged by its actions, has felt like a recession.