New Zealand’s economy shrank more than expected, by -1.0% in the first quarter with economists forecasting the figure to post at -0.7%. The final three months of 2008 saw the economy contract only -0.9%. This latest release marks the fifth consecutive quarter that the island nation sees it’s gross domestic product contract. Over the last 12 months GDP fell -2.7%, adding to the decline of -1.9% seen in 2008 alone.NZD/USD fell 42 pips in the seconds following the release.
Much of this negative figure comes on the back of plummeting investment, as well as consumer spending. The former tanked 7.3% while the latter fell a modest 1.4% in the first three months of the year alone.