New Zealand is officially in recession, but Australia is on the brink
Some of the world’s island nations, isolated from the rest of the world during the global health emergency, are paying a high price.
Economic data from New Zealand show that the country of five million people recently plunged into recession with two straight quarters of negative growth.
Democracies were among the countries that implemented strong health measures aimed at halting the spread of COVID-19.
But funding additional spending creates additional debt, which has carried over into the post-COVID-19 environment.
Greg Jericho, policy director at the Australian Institute’s Center for Future Studies, said the pandemic is uncharted territory for many decision makers.
“It’s always a bit difficult to avoid responsibility for how governments and central banks have acted during a pandemic.”
The International Monetary Fund recently released data examining gross and net debt for 2022.
This showed that G20 countries are bearing the brunt of the post-COVID-19 recovery.
“There was a sense that the pandemic was essentially over.
“Since lockdowns have been lifted, things will go back to normal. I don’t understand,” Jericho said.
