Delta blues - GDP slump the second largest on record

Author
Liam Dann, NZ Herald,
Publish Date
Thu, 16 Dec 2021, 11:08AM
Shops around Newmarket in Auckland get ready for vaccine pass and traffic light covid-19 restrictions.(Photo / NZME)
Shops around Newmarket in Auckland get ready for vaccine pass and traffic light covid-19 restrictions.(Photo / NZME)

Delta blues - GDP slump the second largest on record

Author
Liam Dann, NZ Herald,
Publish Date
Thu, 16 Dec 2021, 11:08AM

Gross domestic product (GDP) fell by 3.7 per cent in the September 2021 quarter, the second largest fall since the current series began in 1986, Stats NZ said today. 

The September 2021 quarter's GDP results reflected a widespread drop in economic activity due to the COVID-19 alert level restrictions and nationwide-lockdown implemented in the second half of the quarter. 

The fall follows a 2.4 per cent rise in the June 2021 quarter. 

The Reserve Bank had forecast a seven per cent fall for the quarter. 

Market economists had initially anticipated a similar sized fall but revised back their calls as stronger data emerged over the past few weeks. 

Most had expected a hit of between 3 and 4.5 per cent. 

They say the less severe hit to the economy will only add to inflationary pressure and confirm expectations for rate rises in the new year. 

Some industries were more affected than others by the higher alert level restrictions during the September 2021 quarter, StatsNZ said. 

"The four industries with the largest falls in activity were retail, accommodation, and restaurants; manufacturing; construction; and arts and recreation as they were the most affected by lockdown measures," said national accounts industry and production senior manager Ruvani Ratnayake. 

"Face-to-face activities were unable to take place, physical workplaces were closed, and non-essential workers remained at home during alert levels 3 and 4" .