WELLINGTON: New Zealand plunged into recession for the first time in a decade Thursday, as data confirmed a record-breaking economic collapse that forced Prime Minister Jacinda Ardern to defend her pandemic response ahead of next month's general election.
The 12.2 percent contraction in April-June was "by far the largest" since records began, national data agency Stats NZ said, with the country put into a strict lockdown for almost two months and the country's borders closed.
Ardern rejected opposition accusations that the tough measures had pushed the economy "off a cliff", saying the restrictions helped contain the virus, which allowed business to resume far earlier than in many other countries.
The centre-left leader, who will go to the polls re-election on October 17, also pointed out that New Zealand had recorded just 25 Covid-19 deaths, out of a population of five million.
"Success for me is saving people's lives, supporting and saving people's businesses, coming out the other side (of the crisis) faster, quicker and with more activity," she told reporters.
"I back our results."
She said the economic pain of lockdown in the June quarter would be followed by a rebound in July-September, when virus-related restrictions were eased significantly. Ardern retains a strong lead in opinion polls and is expected to retain office, despite the ugly pre-election economic figures.
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