WELLINGTON, New Zealand – New Zealand’s economy traveled in the last quarter of 2020 as a border closure to help contain poor businesses pandemic of foreign tourists in summer, opposing housing boom motivated by low interest rates.
Statistics New Zealand said gross domestic product fell 1.0% from the third quarter. The result was worse than expected, but expectations had changed broadly after a higher break in the second quarter and a frenetic kick back in the third quarter.
The impact of the pandemic was more pronounced in annual figures, with the economy 2.9% smaller in 2020 than it was in 2019.
The figures confirmed the need for fiscal and financial support for the economy.
New Zealand has largely introduced Covid-19 distribution through a combination of tight locks and border closures. The country of five million has begun its vaccination effort, which is expected to last throughout 2021 along with the delivery of the Pfizer-BioNTech vaccine.
The first lock in New Zealand last year from late March to May, which kept people at home and closed most businesses, led to a 11.0% decline in the economy in the second quarter. It was followed by a 14% expansion in the third quarter as pent-up demand was released.
The economic and fiscal costs of the pandemics have been as severe as initially feared, but they remain significant. Analysts say they will be a burden in the future as government debt and housing constraints are felt to be higher.
Statistics New Zealand said construction, sales and accommodation contributed to the decline in GDP in the fourth quarter.
Commercial property and infrastructure declined after declining in the third quarter, while residential properties continued to grow, the group said. Sales and accommodation were hurt by the loss of international tourists, he said.
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