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New Zealand economy shrinks record 12% due to virus lockdown

WELLINGTON, New Zealand (AP) — New Zealand’s economy shrank by a record 12.2% in the second quarter due to a strict coronavirus lockdown, but forecasts indicate activity is bouncing back. The quarterly fall in GDP was by far the largest on record and signaled New Zealand was in recession for the first time in 11 years. Economists say the decline will likely be followed by a record increase in activity as many businesses get back to work. Forecasts released by the Treasury this week predict unemployment will peak at 7.8%, lower than earlier predictions of nearly 10%.

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Associated Press

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