Summarised by Centrist
In his article “We asked twenty economists how they would define a recession in New Zealand”, Dan Brunskill describes how New Zealand has narrowly avoided being declared in recession.
Statistics NZ revised its March growth figure by one basis point, initially showing a 0.1% contraction, indicating a quasi-recession. A June data revision rounded it to 0.0%, avoiding the recession label.
This fixation on tiny shifts in inflation-adjusted aggregate output as the sole indicator for a recession seems absurd.
Economists have proposed alternatives and called for a more holistic and qualitative approach – assessing a range of economic conditions.