New Zealand’s economy has limped out of recession, official data showed Thursday, but the country’s finance minister has warned inflation still casts a “long shadow”.The new economic figures were better than experts had anticipated following a gloomy 18 months that saw the economy shrink in four of the last five quarters.
New Zealand’s economic output grew by 0.2 percent between January and March this year, StatsNZ figures showed.
Finance Minister Nicola Willis said it was a positive sign but that the country was still battling rampant inflation and cost-of-living pressures.
Natural disasters have devastated huge swathes of farming countries, while global supply chain issues have hurt the isolated island nation more than most. Tourist numbers have struggled to match the peaks seen before the Covid pandemic.
New Zealand’s center-right government unveiled a tax-cutting budget last month despite a tough economic outlook. To pay for it, Prime Minister Christopher Luxon said he would tighten government spending, having already shed thousands of jobs in the public sector.