Recession

Two months ago Don Brash used a word no-one else had been using. He said NZ faces a recession. He was rubbished by Dr Cullen and others.

Today we learn the GDP dropped 0.1% in the last quarter. Now a recession is negative growth in two consecutive quarters so we are not quite there but the GDP growth in the previous quarter was only 0.1% so the economy hasn’t grown at all over the two quarters.