GDP down 3.7%, second largest quarterly fall since 1986

The economy took a big hit thanks to the long lockdown, as widely predicted.

New Zealand money. (Source: istock.com)

The most widespread measure of economic activity – Gross Domestic Product – shows a 3.7 fall in the September quarter, Statistics NZ revealed today.

That’s the second largest fall since records began in 1986.

It’s the first comprehensive look at the knock the economy has taken thanks to the 2021 lockdown.

Retail, accommodation, restaurants, manufacturing, construction and arts and recreation were the hardest hit.

And the economy saw big falls in spending over that time.

But, the fall is less pronounced than in June 2020 following the first nationwide lockdown.

“The September quarter had fewer days in higher alert levels, and border restrictions were already in place,” Statistics NZ’s Ruvani Ratnayake said.

“Also, some businesses may have adapted to and been better prepared for higher alert levels, compared to the first lockdown.

Overall though, the economy remains in a strong position.

GDP rose annually by 4.9 percent when compared to September 2020.