New Zealand is officially in its first recession in 11 years, by virtue of a second successive quarter of negative growth.
Country’s gross domestic product has shrunk a record 12.2 per cent in the June quarter showing impact of the Strict Level 4 lock down in March and April.
Herald Business Editor at large Liam Dann told Kerre McIvor it's a strange set of circumstances and it's the worst GDP we've ever had, but it matches expectations.
Dann believes the recession is due to the strict lock down rules during level 4 which completely shut down the economy and the border closure as New Zealand depends on tourism and international students.
He says it's a strange set of circumstances.
“Technically in the current quarter we are in right now, we probably experiencing a record number of growth which is probably just a rebound, we kind of need to let this wash over us a bit and see how it looks at the end of the year," Dann said.