Gross domestic product (GNP) fell by 0.1 percent from the previous three months, when GDP fell by 0.7 percent. A year earlier, the New Zealand economy grew by 2.2 percent.
The economy in New Zealand started to cool from the moment the central bank raised interest rates in response to rising inflation. Economic activity in the first quarter was also hampered by a cyclone that hit the country in February.
New Zealand’s general election is four months away. It is expected that the increased cost of living and the economic downturn will play a prominent role in this.