Thursday, 17 September 2020 11:21

COVID-19: Record GDP fall, ag sector suffers smallest drop

Written by  Staff Reporters
The quarterly GDP fall is the largest recorded since the current series began in 1987. The quarterly GDP fall is the largest recorded since the current series began in 1987.

Agriculture has kept losses to a minimum as New Zealand reported its largest ever GDP drop on record.

Gross domestic product (GDP) fell by 12.2% in the June 2020 quarter, Stats NZ announced this morning.

The quarterly fall is the largest recorded since the current series began in 1987.

The fall is comparable to many other countries amid the pandemic; the GDP in the same quarter in Australia fell 7%, Canada 11.5%, Japan 7.9%, the United Kingdom 20.4%, and 9.1% in the United States.

Some industries were more affected than others by the border closure and alert levels restrictions in place during the June quarter.

Agriculture, forestry, and fishing recorded the smallest drop, falling just 2.2%.

Retail trade and accommodation and transport, postal, and warehousing recorded the largest drops, falling 25.2% and 38.7% respectively.

Financial and insurance services was the only industry that grew, with a 0.7% increase.

“Industries like retail, accommodation and restaurants, and transport saw significant declines in production because they were most directly affected by the international travel ban and strict nationwide lockdown,” said national accounts senior manager Paul Pascoe.

New Zealand started the June 2020 quarter in alert level 4 lockdown, reaching alert level 1 on 8 June 2020.

“While level 4 restrictions were in place for most of April, the gradual return to level 1 over the course of the quarter meant that businesses were able to open up again and many people returned to places of work,” said Pascoe.

Annually, GDP fell by 2.0%. This is the first annual decline since the March 2010 quarter.

More like this

Shine off dairy prices

Resurging Covid-19 across the globe is continuing to take the shine off previously high dairy prices.

Health dominates innovation

The changing personal circumstances of consumers, largely driven by Covid-19, is shaping some of the innovation at Fonterra's R&D centre in Palmerston North.

Sheep and dairy numbers fall

Climate change activists, who believe NZ is going to hell in a handcart due to the methane emissions from the country's livestock population, will be delighted to learn that these numbers have fallen dramatically.

National

Clear message for Govt - MP

MP for Southland Joseph Mooney, National, says farmers sent a clear message to the government by taking to the streets…

Machinery & Products

One-pass cultivator moves 70% less soil

According to Kverneland distributor, Power Farming, the KultiStrip system will bring opportunities to farm environmentally, while improving yields and profitability.

Claas buys into bots

German harvesting specialist and tractor manufacturer Claas has acquired a minority shareholding in Dutch start-up company AgXeed, the developer of…

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Thanks - not!

OPINION: Your canine crusader reckons one of the few things you can guarantee in farming - a bit like rates…

Careful

OPINION: A mate of the Hound's reckons the PM needs to be a bit careful about who or what she…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter