An economist says we're in an economy that's significantly smaller than estimated.  

GDP fell 0.3% in the three months to September.  

The June quarter's figures showed 0.5% growth, revised from 0.9%. 

NZ Initiative director Oliver Hartwich told Mike Hosking that it means we're in a technical recession, but the revision's more shocking.  

He says all together, the effect was the economy is now 1.8% of GDP smaller than the Reserve Bank last thought when they set the Official Cash Rate. 

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