If you want to develop your listening skills, try these tasks as you listen to the text. The answers are at the bottom of this page, after the Vocabulary. Thanks to Natasha Groves for preparing the tasks.
If you want to listen and read, just scroll down to the text.
1. Listening for main ideas
First, just listen to the text, taking notes if you wish. What information can you catch during this first listening?
2. Now listen again and answer the following questions:
- What does recent data show?
- How has GDP in New Zealand changed this year?
- How did the Covid-19 pandemic affect GDP?
- Who is to blame for New Zealand’s economic problems?
- Where was New Zealand’s economy placed in the 2024 ranking of OECD countries?
- Which three OECD countries are at the top of the ranking?
- How did New Zealand’s GDP in the 1950s compare to other countries?
- What has happened since the 1950s? Why?
Text
Data released last week shows that the New Zealand economy is in a recession, and it ranks low in an international comparison of OECD economies.
According to data from Statistics New Zealand, gross domestic product (GDP) fell 1 percent in the September quarter (that is, the three months from July to September). This follows a 1.1 percent decline in the June quarter (April to June). Falls in GDP over two consecutive quarters means a technical recession. Most of the decline in activity was in manufacturing, business services, and construction. However, some industries, such as agriculture and real estate services, saw an increase in activity.
These falls in the June and September quarters were the largest quarterly drops since late 2021, when the Covid-19 pandemic was at its peak and there were lockdowns in New Zealand. Apart from that period, these were the largest falls since mid-1991. The current Finance Minister, Nicola Willis from the National Party, blames the previous Labour government, whereas the Labour leader, Chris Hipkins, blames the current government. However, other commentators, including economists, blame the Reserve Bank, because it raised interest rates to reduce economic activity. The Reserve Bank only cut the official cash rate (OCR) in August this year, for the first time in four years, and then again in November. Commentators expect there will be further drops in the OCR next year.
New Zealand’s economy was ranked 33rd out of 37 countries in 2024. The best-performing economies were in Spain, followed by Ireland, Denmark, Greece and Italy. Australia was ranked 21st. The countries below New Zealand were Finland, Latvia, Turkey, and Estonia. The economies were ranked on GDP, stock market performance, inflation, unemployment, and government deficits.
It is interesting to note that in the 1950s, New Zealand was third in the world in terms of GDP per capita. According to Professor Faruk Balli at Massey University, this shows that New Zealand’s economy has grown a lot more slowly than other OECD countries in the last 60 years, mainly because New Zealand is an island country so it is not as easy to trade.
Vocabulary
recession – a difficult time when there is less trade and business activity in a country than usual
OECD – Organisation for Economic Cooperation and Development
GDP – Gross Domestic Product, the total value of all the good and services produced by a country in one year
consecutive – following one after the other, without interruption
blame – to say that someone or something is responsible for something bad
stock market – the business of buying and selling shares in companies, and the place where this happens
deficit – when a country or company spends more money than it earns
per capita – per head of population, or per person
Answers
1. What does recent data show?
The NZ economy is in recession, and it ranks low compared to other OECD countries.
2. How has GDP in New Zealand changed this year?
It fell 1% from July to September; it fell 1.1% from April to June.
3. How did the Covid-19 pandemic affect GDP?
There were large drops in GDP.
4. Who is to blame for New Zealand’s economic problems?
We don’t know. Politicians are blaming each other, while some economists blame the Reserve Bank.
5. Where was New Zealand’s economy placed in the 2024 ranking of OECD countries?
33rd out of 37 countries
6. Which three OECD countries are at the top of the ranking?
Spain followed by Ireland then Denmark
7. How did New Zealand’s GDP per capita in the 1950s compare to other countries?
It was third in the world.
8. What has happened since the 1950s? Why?
The NZ economy has grown more slowly than other OECD countries, mainly because it is an island, so trade is more difficult.